Joan Burton (Dublin West, Labour)
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Question 123: To ask the Minister for Communications, Energy and Natural Resources the steps he will take to address a warning from a group (details supplied) of the need to take action in view of fears that pensioners will face a choice between food and fuel in winter 2008/09; and if he will make a statement on the matter. [37145/08]

Eamon Ryan (Dublin South, Green Party)
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I share the Deputy's concerns about the impact of rising energy costs on pensioners and vulnerable members of society. I am working closely with the Minister for Social and Family Affairs on energy affordability issues in line with our respective responsibilities. We have established an Inter-Departmental/Agency Group on Energy Affordability, to coordinate and oversee actions, under way and planned in relation to energy affordability. This intensive level of coordination among the relevant Departments, agencies and the utilities is crucial to ensuring the effective delivery of a comprehensive approach to tackling energy affordability. As we steadily increase the resources being directed by all concerned, to overcome the challenges, the oversight and coordinating role of the Inter-Departmental/Agency Group is ensuring cohesiveness and complementarity.

One of the fundamental causes of vulnerable members of society being unable to afford to heat their home to a comfortable level is the legacy of older housing with poor energy efficiency standards. I have already increased the allocation for 2008 to the Low Income Housing Programme administered by Sustainable Energy Ireland (SEI) to €5 million. The Programme's primary focus is the Warmer Homes Scheme which provides energy efficiency equipment including insulation and energy efficiency advice at little or no cost to eligible households. The increased allocation is enabling SEI to fund insulation upgrades for an additional 2,000 vulnerable homes in 2008 bringing the total to 5,000 homes this year. Budget 2009 provides for an allocation of €5 million for the Warmer Homes Scheme next year which will be complemented by additional funds from ESB and BGÉ. This will substantially increase the number of poorer homes that will benefit from improved energy efficiency in 2009.

Government policy has focused in recent years on increasing primary social welfare rates to ensure that people on social welfare can meet their basic living costs, including heating costs throughout the year. Since December 2001, overall inflation has increased by 28% while energy product prices have increased by 74%. Over the same period increases in social welfare payments have been between 71% and 88%. These payments are intended to cover general basic living costs, including some heating costs. In addition, the fuel allowance is paid to almost 300,000 people, while 357,000 receive electricity or gas allowances, at a combined cost of approximately €340 million this year.

Significant enhancements have been made to both schemes in recent years;

The value of the fuel allowance has been doubled since 2005 to €18 per week or €21.90 for recipients living in designated smokeless areas;

The number of weeks for which the fuel allowance is paid has been extended to 30; and

In January 2007 the number of units covered by the electricity allowance was increased from 1,800 to 2,400.

In August 2008 the value of the electricity and gas allowances under the household benefits package increased to €540 per annum and are payable throughout the year to over 357,000 pensioners, people with disabilities, and carer households towards their heating, light and cooking costs at an estimated overall scheme cost of €170m in 2008.

Budget 2009 has increased the fuel allowance by a further €2 per week and extended the season by 2 weeks to 32 weeks. A number of groups, including Age Action had called for an increase in the Fuel Allowance. These enhancements will bring the annual cost of the scheme to €205m. The Budget also provided for further increases in basic social welfare payments next year. The supplementary welfare allowance scheme can also be used to assist people, in certain circumstances, with specific heating needs due to infirmity or a particular medical condition.