Written answers

Thursday, 1 December 2005

Department of Social and Family Affairs

Social Welfare Benefits

5:00 pm

Photo of Bernard AllenBernard Allen (Cork North Central, Fine Gael)
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Question 31: To ask the Minister for Social and Family Affairs when he expects to reach a decision on an increase in the fuel allowance; his views on whether due to the recent considerable rise in fuel and heating costs the fuel allowance offers sufficient support to householders; and if he will make a statement on the matter. [37264/05]

Photo of Seán CroweSeán Crowe (Dublin South West, Sinn Fein)
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Question 36: To ask the Minister for Social and Family Affairs if, in view of the massive increases in fuel costs, the fuel allowance is adequate. [37299/05]

Photo of Willie PenroseWillie Penrose (Westmeath, Labour)
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Question 52: To ask the Minister for Social and Family Affairs if his attention has been drawn to the severe hardship facing many persons on low incomes due to the massive increase in fuel costs, particularly over the past 12 months; if, in view of the fact that the fuel allowance has not been increased since 2002 and remains at just €9 per week, he will agree to a substantial increase in the allowance particularly in view of the exceptionally cold weather already experienced this winter and the number of reports from the Combat Poverty Agency and other bodies which have found that Ireland has one of the worst records in Europe in terms of persons being able to heat their homes; and if he will make a statement on the matter. [37195/05]

Photo of Damien EnglishDamien English (Meath, Fine Gael)
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Question 74: To ask the Minister for Social and Family Affairs the number of persons in receipt of the fuel allowance; and if he will make a statement on the matter. [37280/05]

Jerry Cowley (Mayo, Independent)
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Question 89: To ask the Minister for Social and Family Affairs if his Department will increase the fuel allowance rates (details supplied); and if he will make a statement on the matter. [37065/05]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 146: To ask the Minister for Social and Family Affairs if the fuel allowance will be substantially increased; and if he will make a statement on the matter. [37511/05]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 147: To ask the Minister for Social and Family Affairs when the fuel allowance was previously increased; when same is likely to be further increased; and if he will make a statement on the matter. [37512/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 31, 36, 52, 74, 89, 146 and 147 together.

Fuel allowances are a supplementary entitlement payable over the winter heating season to eligible people in receipt of pensions and other qualifying social welfare schemes. Some 274,000 people receive this allowance, at an aggregate cost of €85.4 million this year.

In addition to the fuel allowance, over 320,000 pensioner and other households qualify for electricity or gas allowances through the household benefits package, payable towards their heating, light and cooking costs throughout the year, at an overall cost of €109 million in 2005. As currently structured, these allowances are linked to unit energy consumption in order that these people are protected against unit price increases in electricity or gas. There is also a facility available through the supplementary welfare allowance scheme to assist people in certain circumstances who have special heating needs.

Fuel allowances are incorporated in the recipient's weekly social welfare payment and are not intended to meet heating costs in full. The Government's objective is to ensure that the recipient's total weekly income, including the fuel allowance, is sufficient to meet all their income needs, including heating costs. Budget resources have been concentrated on providing significant real increases over and above inflation each year in all primary social welfare pension, benefit and assistance rates. This is a more costly approach than increasing fuel allowances because the increase is paid for the full year and not just for the 29 weeks of the winter heating season. This approach delivers a better outcome for pensioners and others by substantially increasing their income in real terms over the whole year to better assist them in meeting their normal basic living costs, including heating.

I acknowledge that some fuel costs have increased significantly over the past year in particular. However, overall inflation, including fuel price inflation, has amounted to 12.8% since January 2002 when the value of fuel allowance was last increased. Weekly social welfare rates incorporating fuel allowance have increased cumulatively by between 33% and 37% in that period. The household benefits allowances have also been increased fully in line with electricity and gas prices in the period and are payable all year round to assist eligible pensioners, carers and disabled people with their heating costs.

In relation to practical difficulties in heating homes, I believe this is mainly caused by energy inefficiency in the houses arising from inadequate heating systems, draughts and poor insulation. This is typically the situation with older private dwellings, as more modern private and local authority housing is built to regulated standards of energy efficiency. I recognise that someone on a low income has very limited scope to spend money to correct these structural problems.

As a start in addressing this broader issue, my Department is co-operating with the Department of the Environment, Heritage and Local Government, Sustainable Energy Ireland and the Combat Poverty Agency in an action research project to improve heating systems and insulation in pilot selected older private dwellings in Cork and Donegal, and to monitor the outcomes for the households in terms of improved cost efficiency and comfort and health levels. This project is due to commence shortly and should be very informative in formulating future policy on this issue, as well as being of more immediate direct benefit to the pilot households involved.

In relation to income support, I am keeping the adequacy of the overall system, including the fuel allowance scheme, under close review. Increases in basic payment rates or in the rate or duration of the fuel allowance have significant cost implications. For example, an increase in basic rates of €1 per week would cost €52 million per annum. Increasing the fuel allowance by €1 per week — an 11% increase — would cost €8 million per annum. Increasing the duration of the fuel allowance by one week would cost just under €3 million per annum. Given these significant potential extra scheme costs, any increases in fuel allowance rates or duration are matters to be considered in the context of general increases in the forthcoming budget.

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