Seán Canney (Galway East, Independent)
Link to this: Individually | In context | Oireachtas source

1092. To ask the Minister for Employment Affairs and Social Protection if she will consider increasing the free electricity allowance of €35 under the household benefits package to reflect the significant increase in the cost of electricity in recent months; and if she will make a statement on the matter. [29249/22]

Michael Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

1131. To ask the Minister for Employment Affairs and Social Protection if the rate of electricity allowance payable under the household benefits package will be increased to reflect the increase in energy costs; and if she will make a statement on the matter. [30141/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 1092 and 1131 together.

The Household Benefits Package (HHB) comprises the electricity or gas allowance, and the free television licence.  My Department will spend approximately €273 million this year on HHB for over 492,000 customers.  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. 

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.

Having said that, I am very aware that, mainly due to external factors, the recent increase in consumer prices, especially the increase in fuel and other energy prices, has exceeded even the highest forecasts. 

In response the Government acted early to address these challenges.  To help mitigate the effects of these rising costs, the Government announced a package of measures which will have a positive impact on the incomes of all households in our country. 

This package included lump sum payments of €125 and €100 to all households in receipt of the Fuel Allowance payment, which were paid to social welfare recipients in March and May.

Taken together with the €5 increase in Fuel Allowance introduced as part of Budget 2022, this means that low-income households will see an increase of 55% in Fuel Allowance support provided during this Fuel season compared to last season.  In conjunction with the electricity costs emergency benefit payment, such households will receive over €600 in additional energy supports this year.  Deputies will also be aware of the measures taken by the Minister for Finance to reduce duties on fuel and retain the low level of VAT on hospitality services.  The Minister for Transport has also reduced public transport fares by 20%.  

These measures are in addition to others introduced as part of Budget 2022 - which was the largest social welfare budget package in 14 years - and are more expansive than measures introduced in most other countries.

This Government is very aware of, and concerned about, the impact on rising prices on Irish households, particularly pensioners.  We have reacted quickly with not just social protection measures, but implemented a wide range of initiatives covering tax, energy credits, excise and transport measures.

All of these measures will be kept under review, together with trends in prices to inform preparations for the budget later this year.

I hope this clarifies the matter for the Deputies.