Written answers

Tuesday, 4 December 2007

Department of Social and Family Affairs

Social Welfare Benefits

9:00 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 71: To ask the Minister for Social and Family Affairs if he will increase the fuel allowance from €18 per week by at least €7 per week to reflect the spiralling cost of fuel. [32305/07]

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
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Question 140: To ask the Minister for Social and Family Affairs if there are proposals to change the fuel allowance in order to reflect the true and actual cost of fuel; and if he will make a statement on the matter. [32263/07]

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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Question 146: To ask the Minister for Social and Family Affairs the progress on the commitment made in the Programme for Government to extend the national fuel allowance scheme to cover eligible carers; and if he will make a statement on the matter. [32177/07]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 71, 140 and 146 together.

The national fuel allowance 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. 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. It is not intended to meet those costs in full.

Improvements to the fuel allowance in recent years include an easing of the means test, extending the duration of payment from 26 to 29 weeks and an increase in the rates of payment. In Budget 2007, the rate of fuel allowance was increased by €4 from €14 to €18 (€21.90 in designated smokeless areas). The income threshold for eligibility to fuel allowance was also increased by €49 from €51 to €100 above the state pension (contributory). 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.

Social welfare rates have increased at a significantly greater rate than price inflation in recent years, which has assisted social welfare households to achieve some increase in their quality of life and in their ability to meet the cost of items such as fuel. For example, social welfare payment rates have increased by between 61% and 77% since December 2001, while the cost of living as measured by the consumer price index rose by 23% in that time.

Some 274,000 people benefited from the fuel allowance in 2006 at a cost of some €125m. As a consequence of the increase in rate and the increase in the income threshold for eligibility as announced in Budget 2007, it is estimated that some 286,200 households will benefit under the scheme at a cost of €161.5m this year.

The extension of the national fuel scheme to eligible carers, as set out in the Agreed Programme for Government, will be examined by my Department in the context of the overall package of commitments relating to carers contained in the programme. Any additional costs arising from this or any other improvements to the scheme would also need to be considered in future Budgetary measures having regard to overall resources available for social welfare schemes generally.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Question 73: To ask the Minister for Social and Family Affairs the payments not currently on a statutory basis that he will put on a statutory basis. [32176/07]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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A number of non-statutory schemes are operated by my Department. These include:

the household benefits package, which includes the electricity/gas allowance, the telephone rental allowance and the free television licence;

the free travel scheme;

the back to work allowance, which includes the back to work enterprise allowance;

the back to education allowance;

the national fuel scheme, including the smokeless fuel allowance;

the back to school clothing and footwear scheme;

the school meals scheme and

the part-time job-incentive scheme.

One advantage of operating on a non-statutory basis is that it allows for flexibility in these schemes so that they can be modified in response to customer needs without the need for legislative change. For example, in September 2006, peak time restrictions were removed from the free travel scheme.

Non-statutory schemes decisions are based on published guidelines setting out the conditions of entitlement in detail.

There are currently no plans to place the non-statutory schemes on a statutory basis. However, as is the case with social welfare schemes in general, proposals for change are kept under review.

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