Peter Burke (Longford-Westmeath, Fine Gael)
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605. To ask the Minister for Employment Affairs and Social Protection if she will increase the State pension by a minimum of €15 to assist the elderly with the rise in the cost of living, fuel costs and carbon taxes. [14262/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The social welfare package in Budget 2022 was the highest in 14 years and meant that some 1.4 million people, including over 700,000 pensioners, received a €5 increase in weekly payments, and more if they have dependents. In addition to improvements in core social welfare rates, there were a number of targeted measures designed to support those most vulnerable to poverty, including increases to the Fuel Allowance and the Living Alone Allowance. As energy prices were increasing, I ensured that the increase to the Fuel Allowance rate was implemented from Budget week. I also broadened eligibility for the scheme.

As a result of these targeted measures, a pensioner in receipt of Fuel Allowance, living alone, is seeing an increase of €13 per week during the fuel season due to measures introduced in Budget 2022.

Research shows that these types of targeted measures are effective at protecting the most vulnerable social welfare recipients. 

I am 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 announced additional expenditure measures in February, costing in excess of a half a billion Euro, which will have a positive impact on the incomes of all households in our country.

These measures include an additional lump sum payment of €125, which has been paid to all households in receipt of the Fuel Allowance payment. This lump sum payment is intended to target the most vulnerable pensioners, as well as other social welfare recipients, to ensure that they are protected against rising fuel costs.

This payment, in addition to the Budget increase to the Fuel Allowance rate, means that low-income households will ee an increase of 41% in fuel allowance payments this season when compared to the last season.

While not all pensioners will benefit from the lump sum payment, every household in the State will receive an Energy Credit of €200 which will to be applied to electricity bills.

The Government has also introduced a further tax measure, to immediately reduce the cost of fuels for families and businesses. Excise duty has been reduced by 20 cent per litre of petrol and 15 cent per litre of diesel. There has also been a reduction of 2 cent in the excise duty charged on marked gas oil. These reductions will remain in place until the 31st of August 2022.

Providing a €15 increase in pension age payments is estimated to cost over €535 million in a full year, based on the estimated average number of recipients in 2022. As such, any increase would need to be considered in an overall budgetary and policy context.