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Dáil
‹ Ceisteanna ar Reachtaíocht a Gealladh - Questions on Promised Legislation

Energy bills and fuel support

Summary

Deputy Kerrane pressed for a discretionary fund to help households with rising utility bills and debt. The Minister said the Government would factor soaring gas, electricity and fuel costs into Budget 2022 and noted the fuel allowance will begin next week.

Yesterday in the Dáil, the Tánaiste stated in response to me that the establishment of a discretionary fund to assist households with rising utility bills and, in some cases, debt was a very good idea and would be looked at prior to the upcoming budget. I welcome that. This is a proposal that we introduced in a motion in the Dáil last February on increasing energy costs, the impact of the carbon tax increases and the need for the Government to act.

Now, seven months later, the situation is even worse. Energy prices are soaring, further carbon tax increases are on the way and households are struggling. Families are rationing fuel and they are making choices between putting food on the table and turning on the heating. The Society of St. Vincent de Paul, in a major survey earlier this year, found that nearly 20% of working people are cutting back on fuel and electricity due to costs. Increasing the fuel allowance for existing recipients in the upcoming budget is not enough. We need to look at eligibility and we need to establish a fund to ensure that workers and families outside of the fuel allowance can seek assistance. As the Minister who will be overseeing spending in the upcoming budget, I ask the Minister whether he will commit to this.

Comment on this

I thank the Deputy and I know she raised this issue yesterday as well. Undoubtedly, the significant increase in gas prices internationally is now working through to the very high increases which we are seeing in electricity prices. That is a real concern. We are also seeing it, of course, at the pumps in the forecourts in regard to petrol and diesel. The Government will take this into account in framing budget 2022. The fuel allowance is a really important support for about 375,000 households in the country. As the Deputy knows, it kicks in next week for 28 weeks at a payment of €28 per week. Of course, the rate and the scope and the eligibility criteria for that scheme will be considered carefully by the Minister, Deputy Humphreys, and me in the context of the Estimates. We recognise that a lot of people are under pressure and we will take that into account in framing our final decisions.

Comment on this

On that point, it is time the Minister, Deputy Michael McGrath, and the Minister for the Environment, Climate and Communications, who is responsible for energy, look at this issue on a pan-European level. This issue is not just going to be in Ireland; it is going to be everywhere. The Minister might update the House on what the Government has done in that regard. This is coming down the track very quickly. We are going to have a crisis in this country in the coming weeks and months. It is quite obvious, with inflation and the cost of utility bills, that people are not going to be able to afford them. It is in that zone that I know the Government is going to make increases in the budget, which I welcome. Kites are flying, and that is fine. However, I want to make one thing very clear as regards the dates by which the Government will make these increases. We cannot postpone the winter. Eligibility criteria for fuel allowance increases in regard to the pension and other measures are going to have to be from budget time. They cannot be postponed until 1 January. While the Minister will not announce the budget here today and I respect that, will he at least give us an indication that he will consider that and not have it postponed until January?

Comment on this

I thank the Deputy. We will, of course, consider the point that he has made in regard to the commencement date of any changes that we make. As I said, for those in receipt of the fuel allowance, they will start to receive the benefit of that next week but there are many people who do not get the fuel allowance currently, given the eligibility criteria. It is a means-tested support and people are allowed a certain level of income above the basic social welfare, as the Deputy knows. There are many people who do not get it and, certainly, we acknowledge that the timing of any changes in respect of people's incomes will be particularly important and sensitive in the forthcoming budget, and we will be taking that into account.

Comment on this