Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 73: To ask the Minister for Social and Family Affairs if her attention has been drawn to findings of The Poor Can't Pay Coalition that identified that the social welfare payments of many categories of beneficiary meant that their income was considerably below the poverty line; and her plans to act on these findings. [8682/10]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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As I advised the House on January 19 last, I have noted the contents of the analysis of Budget 2010 produced by the Poor Can't Pay coalition.

Despite the social welfare changes made in the Budget, the expenditure of my Department will still increase in 2010. As provided for in the Revised Estimates Volume published last week, nearly €21 billion will be spent on social welfare in 2010. This is 2.6% or €526 million more than the provisional expenditure figure for 2009.

The October 2008 budget provided for increases of between 3% and 3.8% in the basic payment rates at a time when inflation for 2009 was expected to be 2.5%. As we now know, prices declined by an average of 4.5% in 2009. This trend continued in January when prices declined by 1.1%. In arriving at the adjustments in welfare announced in the last Budget, the Government recognised that it is important to consider not just the overall change but also the impact on different groups. Overall, the reductions announced do not result in a decline in people's spending power having regard to the downward movements in prices.

Indeed, consumer prices are almost back to January 2007 levels. Yet, after Budget 2010, the lowest weekly rate of payment for those aged between 25 and 66 will be €10 higher than in 2007.

The Survey on Income and Living Conditions or SILC, which is undertaken annually by the CSO, is the official source of a number of indicators such as the 'at risk of poverty' and consistent poverty rates. The latest results available apply to 2008. These show the considerable progress made since 2005. Over that period, the 'at risk of poverty rate' has fallen from 18.5% to 14.4 % while consistent poverty has fallen from 7% to 4.2%. Future surveys will, in due course, report on the position for 2009 and 2010. These surveys will have regard to changes both in gross and disposable household income generally for those years as well as the social welfare changes, including improvements, the Government introduced in the period in question. The SILC report on 2009 should be available later this year.

I fully appreciate that the changes made in the welfare area are not easy for people but I believe that if the Government had not taken the steps now to reduce overall public expenditure and restore stability to the public finances, we would have run the risk of making the economic and social situation far worse for everyone, including welfare recipients, in the medium term.

Michael D'Arcy (Wexford, Fine Gael)
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Question 74: To ask the Minister for Social and Family Affairs the action she will take to alleviate the impact of the carbon tax on lower income households that are more likely to rely on higher carbon fuels and to live in badly insulated homes; and if she will make a statement on the matter. [8956/10]

Mary Upton (Dublin South Central, Labour)
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Question 78: To ask the Minister for Social and Family Affairs the details of the fuel voucher scheme as announced in Budget 2010. [8924/10]

Charles Flanagan (Laois-Offaly, Fine Gael)
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Question 101: To ask the Minister for Social and Family Affairs her plans to develop a national fuel poverty strategy; and if she will make a statement on the matter. [8970/10]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 74, 78 and 101 together.

The household benefits package is payable throughout the year to almost 380,000 pensioners, people with disabilities and carer households to assist them with their heating, light and cooking costs. This scheme cost approximately €200m in 2009.

In addition, the national fuel allowance scheme assists householders on long-term social welfare or health service executive payments with meeting the additional cost of their heating needs during the winter season. The allowance represents a contribution towards a person's heating expenses. It is not intended to meet those costs in full and must be seen in the context of the overall level of income available to the family.

In Budget 2009, the duration of the payment was increased by an extra 2 weeks to 32 weeks, while the weekly value of the allowance was increased by €2 to €20 a week, or €23.90 in designated smokeless areas. This compares with just €14 and €17.90 respectively in 2006.

Proper household insulation is absolutely vital in tacking fuel poverty. 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 and the Housing Adaptation Grants for older people and people with disabilities. Considerable progress has been made in this area in recent years.

The Government has announced its intention to introduce a carbon tax, which will come into effect on heating products from May 2010 and on solid fuels at a date to be set by commencement order.

Before the tax is applied to fuels for home heating, arrangements are being made to assist those most at risk of fuel poverty.

In his Carbon Budget Statement, the Minister for Environment, Heritage and Local Government outlined details of €130 million in funding for insulation, €76 million of which will be used to assist low income families. The Government is also conscious that families at risk of fuel poverty will need extra income support to meet the increasing costs of fuel as a result of the carbon tax.

The Department of Communications, Energy and Natural Resources has overarching responsibility for the energy portfolio and has convened an Inter-Departmental/Agency Group on Affordable Energy to co-ordinate and drive Government policy in this area. The objective is to ensure a 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 Inter-Departmental/Agency Group has been asked to draw up an Energy Affordability Strategy for consultation early in 2010. This strategy will set out existing and future approaches to addressing energy affordability and will have regard both to the impact of the carbon tax on low income households and the range of supports outlined above in making its recommendations.

As part of its work, the Group will make recommendations as to the precise package of measures, including in the area of income support, that should be put in place to assist those at risk of fuel poverty in advance of the implementation of the carbon tax on home heating products.