Noel Coonan (Tipperary North, Fine Gael)
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Question 117: To ask the Minister for Social and Family Affairs if she will develop and publish a national strategy to address fuel poverty; and if she will make a statement on the matter. [39393/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I share Deputies' concerns about the impact of rising fuel and energy costs. My own priority, as Minister for Social and Family Affairs, is to ensure that Government assistance is available to those who need our help the most, older people, those with disabilities or serious illnesses, and people on low incomes.

Government policy in recent years, has focused on increasing primary social welfare rates significantly 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%. However, increases in social welfare payments have been between 71% and 88% in the same period. 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.

Significant improvements 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.

In Budget 2009 I increased the fuel allowance by a further €2 per week and extended the season by 2 weeks to 32 weeks. These improvements 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.

Of course income support is only part of the answer in terms of reducing fuel poverty. Proper household insulation is absolutely vital. Initiatives such as the Warmer Homes Scheme, operated by Sustainable Energy Ireland, under the aegis of the Department of Communications, Energy and Natural Resources have a very valuable role to play in that regard, as does funding from the Department of the Environment, Heritage and Local Government to improve the quality of existing local authority housing.

Coordination of the work of the relevant departments and agencies is crucial to ensuring the effective delivery of a comprehensive approach to tackling fuel poverty. While various bodies have significantly increased the resources they are directing at fuel poverty initiatives in recent years, the establishment of an inter-departmental group on energy affordability has helped to ensure that we are working closer together to maximise the potential of our collective efforts. The Department of Communications, Energy and Natural Resources has overarching responsibility for the energy portfolio. It has recently convened this inter-Departmental/Agency Group on Affordable Energy, co-chaired with the Office for Social Inclusion of the Department of Social and Family Affairs, to coordinate and drive Government policy in this area. The Group includes officials of the departments of the Taoiseach, Finance, Environment, Heritage and Local Government, Health and Children, the Commission for Energy Regulation, Sustainable Energy Ireland, the ESB and Bord Gais. The objective is to ensure shared understanding of the challenges and actions underway and to ensure a fully cohesive strategic approach to delivery of affordable energy initiatives and programmes.

The Group will report to the Cabinet Committee on Social Inclusion, Children and Integration and the Cabinet Committee on Climate Change and Energy Security Infrastructure.