Written answers

Wednesday, 18 January 2023

Department of Employment Affairs and Social Protection

Social Welfare Rates

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent)
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886. To ask the Minister for Employment Affairs and Social Protection her plans to increase the free electricity allowance in view of energy price increases; and if she will make a statement on the matter. [1179/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Household Benefits Package (HHB) comprises the electricity or gas allowance, and the free television licence.  My Department will spend approximately €285 million this year on HHB for over 504,000 customers.  The gas or electricity element of the package is paid at a rate of €35 per month, 12 months of the year. 

People over the age of 70 receive the HHB package, with one package provided per household.  The package is also available to people living in the State aged 66-69 years who are in receipt of certain social welfare payments or who satisfy a means test.  The package is available to some people under the age of 66 who are in receipt of certain welfare type payments. 

Any decision to enhance the HHB package would have cost implications and could only be considered while taking account of the overall budgetary context and the availability of financial resources.

The Government is very aware of the increased cost of living and, in Budget 2023, has provided an unprecedented response that aims to ease the financial pressure on households throughout the State.

As part of the Government's cost of living measures in Budget 2023, an Autumn Cost of Living Double Payment was paid to Social Protection recipients in October.

In November, a €200 Lump Sum Payment was paid to pensioners and people with a disability receiving the Living Alone Allowance, a €500 Cost of Living Payment was paid to people receiving Carer’s Support Grant and a €500 Cost of Living lump sum was paid to people in receipt of Disability Allowance, Invalidity Pension and Blind Pension.  A €400 additional Lump Sum payment was also paid to all households in receipt of the Fuel Allowance Payment.  A double month of Child Benefit was paid and a €500 lump sum payment was made to people in receipt of Working Family Payment.

In December, a Christmas Bonus Double Payment was paid to 1.3 million Social Protection recipients including pensioners, carers and people with disabilities.

From January 2023,the maximum rate of core Social Welfare rates was increased.  There will be proportionate increases for qualified adults and for people getting a reduced rate.  The weekly full rate for a qualified child will increase to €42 for children under 12 years of age and to €50 for children aged 12 years and over.

Also, from January 2023, a new Fuel Allowance means threshold was introduced for people aged 70 years and over.  The new means threshold is €500 for a single person and €1,000 for a couple.  Under the formula used to assess means for the Fuel Allowance for over 70s, the threshold for capital that is disregarded in the assessment was increased from €20,000 to €50,000.  The weekly means threshold for those aged under 70 was increased by €80 to €200 above the appropriate rate of State Pension (Contributory).  Similarly, the allowable means for HHB purposes for those aged between 66-69 not in receipt of a qualifying payment was also increased by €80 to €200 above the appropriate rate of State Pension (Contributory).

The enhanced electricity credit of €600 is another important Government measure announced in the Budget.  This will also benefit all households.  The first €200 was applied to electricity bills in November and the second €200 will be applied to electricity bills this month.

The Government will continue to monitor the cost-of-living situation closely.

I hope this clarifies the matter for the Deputy.

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