Written answers

Thursday, 3 November 2011

Department of Social Protection

Social Welfare Benefits

3:00 pm

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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Question 90: To ask the Minister for Social Protection if she will respond to the call from an organisation (details supplied) to reverse the fuel allowance cuts as we do not want elderly and disadvantaged persons going cold this winter; and if she will make a statement on the matter. [32611/11]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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My Department will spend over €530 million in 2011 on the fuel scheme and the telephone, gas and electricity elements of the household benefits package which will benefit some 390,000 people on household benefits and 375,000 on the fuel allowance. In 2005 there were 325,000 people on household benefits and 265,000 on the fuel allowance at a cost of €280 million. The costs have almost doubled in six years while the number of customers has risen by more than 20%.

The fuel allowance is paid for thirty-two weeks, beginning on 26 September. All customers will receive the standard rate of €20 per-week, the rate previously received by the majority of customers, with no additional allowance for living in a smokeless area. The allowance represents a contribution towards a person's normal heating expenses. It is not intended to meet those costs in full.

Difficult decisions had to be made in light of the existing economic situation and commitments made by the previous government. However, I should emphasise that my Department will cover the cost of the price increases in electricity which came into effect from 1 October and maintain the value of these allowances at 1,800 units. In other words, the price increases will not have an impact on the customers who benefit from this support. The electricity allowance, which was €35.80 per month, will increase to €39.40. The price increases will cost the Department over €4 million in 2011 and €17.3 million in a full year.

I accept that the recent reduction in the household benefits package may be difficult for some people. I hope the fact that these new price increases will be covered by my Department will give reassurance to those who are supported by the household benefits package.

We should also bear in mind that data show that households comprising predominantly older people have lower consistent poverty rates than other age categories. In 2009 single adults aged over 65 with no children had a consistent poverty rate of 0.6% while people in households with two adults, at least one of whom was aged 65 or over, with no children had a consistent poverty rate of 1.0%. In the general population, 5.5% of people were in consistent poverty. The Survey on Income and Living Conditions (2009) also showed that the elderly were less likely than other groups to have gone without heating in the previous year. The most cost-effective means of protecting households from energy poverty is to reduce consumption of energy through improving the home's thermal efficiency. Sustainable Energy Ireland has administered the Warmer Homes programme for privately owned low-income households since 2001, benefitting 65,000 households, with a further 15,000 to receive upgrades this year. A similar programme is in place for local authority houses.

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