Róisín Shortall (Dublin North West, Social Democrats)
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778. To ask the Minister for Social Protection if he will commit to reversing the cuts to the fuel allowance in the upcoming budget; and if he will make a statement on the matter. [25788/16]

Leo Varadkar (Dublin West, Fine Gael)
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The fuel allowance is a payment of €22.50 per week for 26 weeks from October to April, to low income households, at an estimated cost of €224 million in 2016. The purpose of this payment is to assist these households with their energy costs. The allowance represents a contribution towards the energy costs of a household. It is not intended to meet those costs in full. Only one allowance is paid per household. My Department also pays an electricity or gas allowance as part of the household benefits package to approximately 421,000 customers, at an estimated cost of €228 million in 2016.

The last reduction to the fuel allowance scheme was in 2012 when the duration of the fuel allowance scheme was reduced from 32 weeks to 26 weeks, at a time when difficult decisions had to be made in light of the existing economic situation.

The scheme is intended to provide some additional support for people on long-term welfare payments during the winter season which clearly does not last for 32 weeks. By reducing the fuel season by six weeks it restored the core purpose of the payment as a winter fuel support. There was no cut in the rate of payment of the fuel allowance and in 2016, with the improved economic conditions, the rate of fuel allowance was increased from €20 per week to €22.50. The Government believed that increasing the rate during the colder 26 weeks of the year, rather than extending a lower payment into months during which recipients faced a lesser heating cost, was the correct decision to make.

The best way to tackle fuel poverty in the long term is to improve the energy efficiency of the dwelling. My Department works closely with the Department of Communications, Energy and Natural Resources on these issues and in moving forward the actions agreed in the Energy Affordability Strategy. In that regard, the Better Energy Homes scheme provides support towards the installation of attic and wall insulation, and heating system upgrades.

Any decision to extend the fuel allowance season would have to be considered in the overall budgetary negotiations.

I hope this clarifies the matter for the Deputy.