Michael Ring (Mayo, Fine Gael)
Link to this: Individually | In context

Question 605: To ask the Minister for Social and Family Affairs his views on raising the living alone allowance in view of the fact that it is at a low rate and has been for some time; if he will raise it to a more realistic level; and if he will make a statement on the matter. [9981/07]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

The living alone increase is an additional payment of €7.70 per week made to people aged 66 years or over who are in receipt of certain social welfare payments and who are living alone. It is also available to people who are under 66 years of age who are living alone and who receive payments under one of a number of invalidity type schemes. The increase is intended as a contribution towards the additional costs people face when they live alone.

The policy in relation to support for pensioners has been, for many years, to give priority to increasing the personal rates of pension rather than focusing on payments such as the living alone increase. This approach ensures that resources are used to improve the position of all pensioners and is subject to regular review. It was decided in the context of budget 2007 to continue this policy with maximum increases of €16 and €18 per week granted on personal rates giving a maximum rate of the State pension (contributory) of €209.30 per week and a maximum non-contributory pension of €200 per week. Taking account of the increases in the budget, since 1996 pensions have increased by almost 119% or about 57% in real terms.

Bernard Allen (Cork North Central, Fine Gael)
Link to this: Individually | In context

Question 606: To ask the Minister for Social and Family Affairs if he plans to extend the grant under the national fuel scheme to an all year round basis in view of the high energy costs at the present time, which are causing severe financial hardship to the elderly and the ill. [9984/07]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

The national fuel scheme assists householders on long-term social welfare or health service executive (HSE) payments with meeting the cost of their heating needs during the winter season and adjoining months. Fuel allowances are paid for 29 weeks from end-September to mid-April and are included in the recipient's weekly payment during this period. The allowance represents a contribution towards a person's normal heating expenses. It is not intended to meet those costs in full.

The fuel allowance scheme has been improved and expanded over recent years. The range of improvements made to the scheme include an easing of the means test, extending the duration of payment from 26 to 29 weeks and an increase of €5 in the rate of payment in the 2006 budget. In budget 2007, I provided for a number of further improvements in the fuel allowance scheme. These comprise an increase in the weekly rate of fuel allowance of €4 from €14 to €18 (€21.90 in designated smokeless areas) and an increase in the income threshold for eligibility to fuel allowance by €49 from €51 to €100 above the State pension (contributory) rate.

Some 274,000 people benefited from the fuel allowance in 2006 at an estimated annual cost of some €125 million. As a consequence of the increase in rate and the increase in the income threshold for eligibility as announced in the recent Budget, annual expenditure on the scheme in 2007 will increase by an estimated €36.4 million. The total annual cost in 2007 is estimated at over €161 million.

Fuel allowances are incorporated in the recipient's weekly social welfare payment. The Government's objective is to ensure that the recipient's total weekly income, including the fuel allowance, is sufficient to meet all of their income needs, including heating costs. Budget resources are concentrated on providing significant real increases over and above inflation each year in all primary social welfare pension, benefit and assistance rates.

The increases of €16 and €18 per week in the rates of payment for contributory and non-contributory pensions respectively announced in the recent budget are a continuation of this policy. 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.

Under the supplementary welfare allowance scheme, which is administered on my behalf by the Community Welfare Service of the Health Service Executive, a special heating supplement may be paid to assist people in certain circumstances who have special heating needs. If a recipient of a social welfare or Health Service Executive payment has exceptional heating costs due to ill health, infirmity or a medical condition which he/she is unable to meet out of household income, it is open to him/her to apply to the local community welfare officer for a special heating supplement under the supplementary welfare allowance scheme.

Any further extensions or improvements to the fuel allowance scheme would have significant cost implications and would have to be considered in a budget context and in the light of the resources available for improvements in social welfare generally.