Fergus O'Dowd (Louth, Fine Gael)
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Question 39: To ask the Minister for Social and Family Affairs if he will increase the fuel allowance for pensioners in view of the significant cost of energy; and if he will make a statement on the matter. [23234/06]

Séamus Brennan (Dublin South, Fianna Fail)
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The aim of the national fuel scheme is to assist householders on long-term social welfare or health service executive payments with meeting the cost of their additional heating needs during the winter season. Fuel allowances are paid for 29 weeks from end-September to mid-April. The allowance represents a contribution towards a person's normal heating expenses.

The scheme has been improved in recent budgets. The means test has been eased and the duration of payment increased from 26 weeks to 29 weeks. Budget 2006 provided for an increase in the rate of fuel allowance of EUR 5.00 from EUR 9.00 to EUR 14.00 (EUR 17.90 in designated smokeless areas). Some 145,800 customers receive basic fuel allowance and 118,600 receive smokeless fuel supplement) will benefit in 2006 at an estimated cost of EUR 125.1m. Fuel allowances are incorporated in the recipient's weekly social welfare payment and are not intended to meet heating costs in full.

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 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.

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 EUR 109 million in 2005. As currently structured, these allowances are linked to unit energy consumption, so that these people are protected against unit price increases in electricity or gas.

If an individual has an exceptional heating cost by virtue of a particular infirmity or medical condition which they are unable to meet out of household income, it is open to them to apply to their local community welfare officer or a special heating supplement under the supplementary welfare allowance scheme.

I am keeping the fuel allowance under review in the light of energy costs. Any changes to the Fuel Allowance Scheme or any other initiatives on fuel charges would have significant cost implications and would have to be considered in the context of the Budget and in the light of the resources available to me for improvements in social welfare generally.