Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 292: To ask the Minister for Social Protection the action he is taking to alleviate the impact of the carbon tax on lower income households; and if he will make a statement on the matter. [21939/10]

Éamon Ó Cuív (Galway West, Fianna Fail)
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The Department of Social Protection already assists low income households with heating costs through their basic payments, through the fuel allowance scheme and through the household benefits package of electricity and gas allowances. These schemes have been improved significantly in recent years. The fuel allowance is paid for 32 weeks each year from end September to end April. In the 2009/2010 heating season over 340,000 recipients benefited from the allowance at a cost of over €231million.

Some 376,000 pensioners are receiving the household benefits which provides 2,400 electricity units per annum (or the gas equivalent) over the year and it is estimated that some 140,000 of these households are receiving both fuel allowance and the electricity units /gas allowance under the household benefits to assist with the heating and other energy requirements. The household benefit package cost €184million in 2009.

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. 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 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.

Róisín Shortall (Dublin North West, Labour)
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Question 293: To ask the Minister for Social Protection when and the way he proposes to amend the qualifying rules and benefits under mortgage interest supplement. [22003/10]

Éamon Ó Cuív (Galway West, Fianna Fail)
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There are currently just over 16,500 people in receipt of mortgage interest supplement, compared to 8,091 recipients in 2008. Expenditure for the year ending December 2009 was €60.7m; the estimate for 2010 is €63.9m. The mortgage interest supplement scheme is currently under review. The main purpose of this review is to examine how the scheme can best meet its objective of catering for those who require assistance on a short-term basis. The review group includes representatives from my Department, the Community Welfare Service, the Departments of Finance and Environment, Heritage and Local Government, together with a representative from the Office of the Financial Regulator.

As part of the initial review, guidelines on specific and immediate operational issues were drawn up and circulated to the community welfare officers. These guidelines are available on the Department's website at www.welfare.ie The group is examining trends in programme and administrative costs, the impact of the Financial Regulator's statutory Code of Practice on Mortgage Arrears and legislative and operational issues arising, including the cap on hours of employment. The review is also considering whether alternative approaches to achieving the scheme's objectives are warranted in the light of recent changes in the economic climate and the mortgage market.

More recently, the Government has established a broader and more comprehensive review of mortgage arrears and personal debt. The Mortgage Arrears and Personal Debt Review Group under the independent chairmanship of Mr. Hugh Cooney, comprises representatives from my own Department, the Departments of Finance, Taoiseach, Environment, Heritage and Local Government, Justice, Equality and Law Reform, and Communications, Energy and Natural Resources. In addition the Group has representatives from the Office of the Financial Regulator, the ESRI, the Irish Banking Federation, the Free Legal Advice Centre and the Law Reform Commission.

The terms of reference for the Group are based on the Renewed Programme for Government, with an emphasis on protecting the family home. They include a review of the statutory Code of Conduct on Mortgage Arrears and , the recently agreed protocol between the Irish Bankers Federation and the Money Advice and Budgeting Service on debt default, with a view to expanding the options available for dealing with debt situations to avoid foreclosure.. In addition, the Group is examining measures adopted in other jurisdictions and considering ways of expanding existing mortgage-support measures. I understand that the Group will make its report to the Minister for Finance by the end of June. The conclusions and recommendations from the review of the mortgage interest supplement scheme, which is currently being finalised, will inform the work of this group.