Tom Hayes (Tipperary South, Fine Gael)
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Question 83: To ask the Minister for Social and Family Affairs the action he 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 [15441/10]

Liz McManus (Wicklow, Labour)
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Question 87: To ask the Minister for Social and Family Affairs the steps he will take to combat fuel poverty. [15381/10]

Éamon Ó Cuív (Galway West, Fianna Fail)
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I propose to take Questions Nos. 83 and 87 together.

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.

Arrangements are being made to assist those most at risk of fuel poverty.

In his Carbon Budget Statement, the Minister for the 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 coordinate and drive Government policy in this area.

The Inter-Departmental/Agency Group has been asked to draw up an Energy Affordability Strategy. 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 the meantime the Department of Social and Family Affairs will continue to assist social welfare recipients with heating costs through their basic payments, through the fuel allowance and through the household benefits package of electricity and gas allowances.

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 €184m in 2009.

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.