Éamon Ó Cuív demands fuel allowance boost after 74% oil rise

I know you've answered this in various forms, but we're back to the fuel allowance and the extraordinary increase in fuel costs over this winter, which are unlikely to abate, given the situation in Ukraine and in Europe. So you might tell me whether you're going to increase the real purchasing power of the fuel allowance, and as other deputies have asked, extend it to people. who are just a small amount over the... The Prime Minister. The Prime Minister. Goerham, I have got the... Can Coerle, and thanks, Deputy, for raising this question. The Government is committed to protecting vulnerable households from the impact of energy costs. As part of the overall welfare budget package of £600 million in increases secured by 2022, I increased the fuel allowance payment by €5 per week, effective from Budget Night. I also increased the weekly income threshold for fuel allowance by €20, which enables more people to qualify for this support. Further government measures were recently announced to help mitigate the effects of rising energy costs. As part of these measures, totalling over €500,000, an additional lump sum payment of €125 was paid to all households in receipt of the fuel allowance payment. It is estimated that this additional lump sum will cost an estimated €49 million. The lump sum payment, in addition to the budget increase, will mean that low-income households will see an increase of 41% on this fuel allowance season compared to last season. The recently announced electricity costs emergency benefit payment is another key measure and will be paid, in addition to the gas and electricity element of the household benefits package, to qualifying households. Approximately 2.1 million households will benefit by €200 each from the new scheme. The combined worth of these payments to fuel allowance recipients is €325, which is the equivalent of almost 10 weeks of additional fuel payment. Furthermore, due to the continuing rise in inflation and as part of the economic consequences of the tragic conflict in Ukraine, the government recently reduced excise duty on fuel. Minister, the rises given in the budget last autumn were given at a time of relatively stable fuel prices. So they were given just to maintain the situation as it was and had nothing to do with what has happened since. Minister, I checked it, at the end of December, 500 litres of kerosene cost about €411. Today it is €716 for 500 litres. That is an increase of 74%. That is the scale of the challenge. And what we have provided is €125 because, as I said, the other thing was pre-factum and it was not based on anything to do in Ukraine, which has not become an issue at that stage. So, Minister, in view of the incredible increase in the prices of fuel and the huge pressure on people at the lowest level of society, will there be further consideration given to this, particularly if this kind of price or the price of the 12th of March at €842 for 500 litres is maintained? Minister. Minister. Minister. Thank you and thanks Deputy. Can I just say that the Government absolutely recognises the impact that the rising energy prices are having on people and that is why we have acted to try and assist families. We have brought forward a series of measures which cost over €1 billion to help ease the burden on people. And just to say, last year the fuel allowance was €784, this year it is €1,049, that is when you include the €125 lump sum payment. When you add on the €200 energy credit as well, that brings it up to €1,249. So, when you compare that with the €784 last year, you are actually looking at a 60% increase in the fuel allowance and in monetary terms, if my calculations are correct here, that is an extra €465. And I do take the point that everybody is talking about when they are filling their tank and they cannot get over how much it is costing to fill the tank of oil, but the Government just cannot do everything. But we have brought in a lot of measures and we are trying to help and of course we keep these things under review. As I said, you had already raised the fuel allowance last autumn because you realised that even at the old prices, it was inadequate. And the free electricity allowance has been the same for a long time and it no longer relates to units, it relates to a cash amount. In the old days, if the price went up, the units that were allowed stayed the same, therefore it made no difference. The cost didn't increase, but that was changed. Now, reality is everybody got the extra money for electricity. Nothing has been done for those who are on the household benefits package on the electricity side. So you are distorting the figure slightly with no disrespect, Minister, because you are conflating the fuel allowance that was given before the rise in prices due to Ukraine. What I am asking for, what is the response going to be now that prices have gone up 74% due to Ukraine and that we have over 30% increase in gas prices and that we have also huge increase in electricity prices. And 1.25 is the total response. Thank you. I think, Deputy, we have to put this in perspective. We had a pandemic. We spent £9 billion on the PUP. In October, we introduced the largest social welfare budget in 14 years. And in the last few weeks, we have announced another £1 billion to assist with energy costs. And, of course, we would all like to do more. But, you know, the reality is that resources are finite. But in fairness, we have, when you count up what I outlined there, compared to last year, we have increased the fuel allowance by 60%. And look at, as I said to you, we will keep all these things under review, but it is a difficult time for everybody. And I do understand that. I'll get to ahorrar… Bucket誠��