Written answers

Tuesday, 22 March 2022

Department of Employment Affairs and Social Protection

Social Welfare Code

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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52. To ask the Minister for Employment Affairs and Social Protection if she intends increasing the payment of the energy element of the household benefits package in order that the real purchasing power of the package is maintained in view of the recent rapid increase in the price of energy; and if she will make a statement on the matter. [14836/22]

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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61. To ask the Minister for Employment Affairs and Social Protection if the household benefits package will be enhanced given the increased cost of living; and if she will make a statement on the matter. [14863/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 52 and 61 together.

The Household Benefits package (HHB) comprises the electricity or gas allowance, and the free television licence.  The package is generally available to people living in the State aged 66 years or over who are in receipt of a social welfare type payment or who satisfy a means test.  The package is also available to some people under the age of 66, who are in receipt of certain welfare type payments.  My Department will spend approximately €273 million this year on HHB. 

In 2022 the estimated cost of the gas and electricity element of the package is €203 million and will benefit over 479,000 households.  The gas and electricity element is paid at a rate of €35 per month, 12 months of the year. 

Any decision to enhance or increase the electricity and gas aspect of the package would have budgetary consequences and would have to be considered in the context of overall budget negotiations.  

The Government is acutely aware of the increase in consumer prices in recent months, especially the increase in fuel and other energy prices.  To help mitigate the effects of these rising costs, the Government has announced additional expenditure measures to a total of over half a billion which will make a positive impact on the incomes of all households in our country.

As part of these measures, I was delighted to announce an additional lump sum payment of €125 that was paid to all households in receipt of the Fuel Allowance payment.  It is expected that this additional lump sum will cost an estimated €49 million.

Other significant measures announced by the Government include the Electricity Costs Emergency Benefit Payment which is a key measure being developed by the Government to help mitigate the effects of the recent rise in electricity prices.  The scheme, under the auspices of the Minister for Environment, Climate and Communications and supervised by the Commission for the Regulation of Utilities, will be paid in addition to the gas and electricity element of the HHB package to qualifying households.  Approximately 2.1m households will benefit by €200 each from the new scheme.

The combined worth of the Electricity Costs Emergency Benefit Payment and the additional fuel lumpsum payment is €325 or the equivalent of nearly 10 weeks of additional fuel allowance or over 9 months of additional HHB payments.  I have also announced that the Working Family Payment budget increase announced on Budget Day will be brought forward from June to April this year.

Furthermore, due to the continuing rise in inflation and as part of the economic consequences of the tragic conflict in Ukraine, the Government recently reduced excise duty on fuel.

Under the Supplementary Welfare Allowance scheme, my Department also provides Exceptional Needs Payments which may be made to help meet an essential, once-off cost which customers are unable to meet out of their own resources, and this may include exceptional heating costs.  Decisions on such payments are made on a case-by-case basis.

I hope this clarifies the matter for the Deputies.

Photo of Pádraig O'SullivanPádraig O'Sullivan (Cork North Central, Fianna Fail)
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53. To ask the Minister for Employment Affairs and Social Protection if she plans to amend the eligibility criteria for the free fuel allowance scheme in cases in which the income of a person slightly exceeds the allowed threshold; and if she will make a statement on the matter. [14760/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Fuel Allowance is a payment of €33.00 per week for 28 weeks (a total of €924 each year) from October to April, which is supporting up to an estimated 400,000 households in 2022, at an estimated cost of €366 million in 2022.  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.

In Budget 2022 and with immediate effect the Government increased the weekly means threshold for the fuel allowance scheme by €20 to €120 above the appropriate rate of Contributory State Pension representing a 20% increase and enabling more people to qualify for this support.  The €120 allowable means limit is significantly more than the €33 weekly rate of fuel allowance.

Further changes to the Fuel Allowance scheme in Budget 2022 included increasing the weekly rate of fuel allowance by €5 to €33 per week with immediate effect, and with effect from September 2022 the reduction of the qualifying period for Jobseeker’s and Supplementary Welfare Allowance recipients from 15 to 12 months.

The Government has, therefore, implemented significant improvements through Budget 2022.  Any proposal to further increase the allowable means for Fuel Allowance purposes or any further changes to the eligibility criteria would have to be considered in this context and in the context of the overall policy and budgetary situation.

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, and this may include exceptional heating costs.  Decisions on such payments are made on a case-by-case basis.

I hope this clarifies the matter for the Deputy.

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