Arthur Spring (Kerry North-West Limerick, Labour)
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To ask the Minister for Social Protection her views on an introduction of a vouched scheme or smart card for redemption of the winter fuel allowance to ensure the purchase of legitimate and tax compliant coal; and if she will make a statement on the matter. [53052/12]

Joan Burton (Dublin West, Labour)
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The current fuel allowance season commenced in October this year and will run for 26 weeks until April 2013. My Department will spend almost €215 million in 2012 on the scheme benefitting almost 400,000 people.

The purpose of the fuel allowance scheme is to assist pensioners and householders on long-term social welfare payments with meeting the cost of their heating needs during the winter season. The allowance represents a contribution towards a person's normal heating expenses. It is not intended to meet those costs in full.

The allowance is €20 per week and is paid with the person’s weekly social welfare payment. This allows the recipient to purchase whatever type of fuel they wish, be that oil, coal or natural gas. Vouchers have been used in the past but such schemes, by their nature, introduce stigma to a scheme. It is also the experience of the Department that voucher systems are administratively complex, inordinately costly and raise fraud and control issues.

Given that the face value of any vouchers issued would be relatively small, the administration would significantly add to the cost of the scheme. Such a system would have to operate across a wide diversity of fuel suppliers, given the range and type of home heating products available, including suppliers based outside the jurisdiction. It would also require the putting in place of a separate administrative arrangement, adding further complexity to service provision for customers. Issues would arise with the distribution, reconciliation and control of vouchers. In addition, vouchers are easily lost and there would be much greater fraud potential, requiring more involved control procedures to minimise risks.

Given the Department’s previous experience with vouchers and the Department’s current e-payment strategy, it is not intended that a voucher system will be introduced in connection with any aspect of the payments made at this time. I am satisfied that the scheme as it is currently administered allows the greatest flexibility and meets the needs of the customers of my Department.

The regulation of coal standards is a matter for my colleague, the Minister for the Environment, Community and Local Government.