Louis O'Hara (Galway East, Sinn Fein)
Link to this: Individually | In context

131. To ask the Minister for Employment Affairs and Social Protection the rationale for his decision to remove the credit option for the household benefits package from December; and if he will make a statement on the matter. [50599/25]

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context

The Household Benefits Package (HBP) comprises of 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.

The decision to remove the credit payment option for new customers of the HBP has been taken following a following an examination of customer behaviour and trends over several years. An increasing number of new customers were opting for the cash payment option even where the credit payment option was available. The credit payment option will remain for those customers who already receive their payment in this way as long as there is no change in their circumstances.

The decision also ensures that customers of all domestic energy providers are treated equally, and that no supplier would have a perceived advantage over competitors in the domestic energy market. This was a concern previously raised by the some energy providers and Commission for Regulation of Utilities. The decision also means that Household Benefits Package customers can move freely between energy providers, thereby taking advantage of the best deals in the energy market, without there being any change in the way their HBP payments are made.

I trust this clarifies the position for the Deputy.