Tom Fleming (Kerry South, Independent)
Link to this: Individually | In context

Question 155: To ask the Minister for Social Protection if she will find the €55 million of savings elsewhere in her departmental budget rather than eroding the progress made for our senior citizens over the past 40 years due to the fact that the proposed reductions will have health implications for people who have insufficient fuel for their needs over the winter period. [21819/11]

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

I have no plans to reconsider the changes to the fuel allowance and household benefits package which were announced last week. From September 2011 the fuel allowance is to be standardised at €20 per week, the rate currently received by the majority of customers, with no additional allowance for living in a smokeless area. The cost of the telephone allowance will be reduced following negotiations with Eircom which will ensure that customers receive €26.86 of value on their bills, at a cost to the State of €22.22 per month. The number of free units provided under the electricity and gas allowance will be reduced to the level at the start of 2007 (from 2,400 to 1,800). These three measures will generate savings of €17 million in 2011 and €65 million annually.

While we have had to implement these measures, the House should be aware that these savings were provided for last December in Budget 2011 but were not specified or announced by the Government at that time.

While of course we want to protect the basic social welfare payments which have very positive economic and social effects, regrettably there is an ongoing necessity to achieve savings due to our commitments with the IMF/EU/ECB Troika. There will be an ongoing necessity to curtail overall expenditure in 2012 and in later years. The Comprehensive Review of Expenditure currently underway in all government departments and agencies will form the basis for making the necessary decisions to achieve this.

Along with other Departments and agencies, my Department has been working with the Department of Communications, Energy and Natural Resources on an Affordable Energy Strategy and this is expected to be brought to Government in the Autumn. Energy poverty is a factor of income, energy prices and the thermal efficiency of the home. The most cost-effective means of protecting households from energy poverty is to reduce their consumption of energy through improving the thermal efficiency of the home. The SEI has administered an energy efficiency programme for privately owned low income households (Warmer Homes) since 2001. Over 65,000 such households have benefited to date, with a further 15,000 expected to receive energy efficiency upgrades this year. A similar upgrade programme is also in place for local authority houses.