Willie Penrose (Longford-Westmeath, Labour)
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2116. To ask the Minister for Social Protection the estimated cost of increasing the rate of fuel allowance by €6.50 which would restore purchasing power parity of 2010 levels; and if she will make a statement on the matter. [29106/17]

Regina Doherty (Meath East, 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 €229 million in 2017. 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 the household benefits package at an estimated cost of €232 million in 2017. €177 million of this cost relates to the electricity or gas allowance element of the household benefits package.

Under the supplementary welfare allowance scheme, exceptional needs payments may be made to help meet an essential, once-off cost which customers are unable to meet out of their own resources – this may include exceptional heating costs.

Given the 2017 estimated cost of fuel allowance is €229 million based on a weekly fuel allowance rate of €22.50, the estimated cost of increasing the fuel allowance by €6.50 a week to €29.00 per week would be expected to be over €66 million.

This would amount to an increase of 28.9% on the current rate which was most recently increased last year by 12.5%. I am advised that CPI inflation in the 7 years between May 2010 and May 2017 (the most recent figures available) has amounted to 5.2%.

Any decision to increase the fuel allowance payment would have to be considered in the context of overall budgetary negotiations.

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, Climate Action and Environment 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.

I hope this clarifies the matter for the Deputy.