Terence Flanagan (Dublin North East, Fine Gael)
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Question 291: To ask the Minister for Social Protection the position regarding the households benefits package (details supplied); and if she will make a statement on the matter. [37541/11]

Joan Burton (Dublin West, Labour)
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This year the Department of Social Protection will spend over €530 million in 2011 on the fuel allowance scheme and the telephone, gas and electricity elements of the household benefits package. This will benefit some 390,000 people on household benefits and 375,000 on the fuel allowance compared with 2005 when 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 Department is covering the cost of the price increases in electricity which came into effect from 1st October. The electricity allowance, which was €35.80 per month, has increased to €39.40. These price increases will cost the Department over €4 million in 2011 and €17.3 million in a full year.

Difficult decisions had to be made in light of the existing economic situation and commitments made by the previous government. A number of measures for savings in 2011 and future years were specified as part of Budget 2011 but were not announced by the Government at the time. These included a saving of €30 million in the energy and telephone elements of the household benefits package in 2011 and subsequent years. They also included the abolition of the smokeless fuel allowance with a saving of €7.7 million in 2011 and €17.5 million in subsequent years. The number of free units provided under the electricity and gas allowance were reduced from 2,400 to 1,800 with a view to generating savings of €17 million in 2011 and €65 million annually.

The Minister for Communications, Energy and Natural Resources published Warmer Homes: A Strategy for Affordable Energy this week setting out a vision for improving the affordability of energy for low-income households. 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.

All schemes of the Department of Social Protection are being examined in the context of the forthcoming Budget and no final decisions have been made in relation to welfare expenditure for next year. These decisions will be made, after full consideration, by the Government and will be announced on Budget day.