Dáil Éireann Debate, Thursday - 24 September 2026
12. Deputy Aindrias Moynihan asked the Minister for Social Protection the measures being considered around the electricity allowance provided under the Household Benefits Package; if he will consider increasing the value of this allowance in line with rising unit costs for electricity; and if he will make a statement on the matter. [67565/26]
Amharc ar fhreagraThe free electricity allowance remains fixed at €20 a year; exactly the same level since 2013, yet electricity prices have increased substantially in that period, reducing the real value of the support.
This is affecting not only older people but also those who have disabilities and those who are living alone. It is part of the programme for Government to review the household benefits package. What plans does the Minister have to increase the free electricity allowance in order that it better reflects the energy costs households are facing?
Gabhaim buíochas leis an Teachta as an gceist thábhachtach seo. Mar is eol dó, the household benefits package is available to those who are aged 70 and over, regardless of means or household composition. It is also available as a supplementary allowance to those in receipt of about 15 different social protection payments. In total, 561,000 households benefit from the payment. We will invest €317 million this year on household benefit, of which about €231 million is allocated in respect of energy costs. It is an important support to households with energy costs.
When acknowledging the increase in energy costs, we must also acknowledge the volatility in those costs. For example, the price of oil has fluctuated from $60 a barrel in December 2025 to $138 a barrel last April. It fell back to $68 a barrel in July and is now back up to over $100 a barrel. I need to ensure that any measures I take in that context are targeted and timely and that they hit those who directly need them. Also, we have looked at targeted measures in recent budgets. Looking at the household benefits, we also have to look at the changes in fuel allowance payment, which now support over 463,000 households, over 100,000 more households in recent years.
The fuel allowance has been utilised to respond to spikes in energy costs. We have been able to extend the season. During the course of the period to which the Deputy refers, there were also the one-off payments. We are looking at the fuel allowance and the household benefits in the context of the forthcoming budget package. I also direct the attention of the House to the information campaign we launched last week at the ploughing concerning the eligibility for household benefits and, particularly for those over the age of 70, that it is not means tested. There has been huge interest in that campaign, both at our stand at the ploughing, but also through phone calls and engagements. What we have found in terms of the interest, is that the majority of those contacting us are on the payment. I encourage all Deputies to bring the attention of their constituents to that campaign through my Department's social media channels and through their own information.
I acknowledge the headway made on the broader household package. I welcome the fact that it is being examined. In particular, I draw the Minister's attention to the electricity allowance. When the allowance was set in 2013 it had the capacity to buy 1,526 units of electricity per year. Today, that same €420 payment covers no more than 450 units of electricity. That is more than a 70% reduction in the capacity of the allowance, which is impacting not only on pensioners but also on people with disabilities and people living alone - people who would have higher energy costs and more challenging household bills. The allowance is frozen, the electricity bills are not and older people, people with disabilities and people living alone are paying the price in the meantime. Do the officials recognise the electricity aspect of the allowance? Can there be a particular focus on it in any review?
I assure the Deputy that we are very focused on all energy costs and on electricity in particular. That is why we have looked at the fuel allowance in particular for the older age cohort in terms of expanding eligibility for it. The allowable means for those aged 66 and over for the fuel allowance is now €534 per week for a single person and €1,068 for a couple. In particular, we have increased the disregard of savings and investments from €20,000 to €50,000 for those aged 66 and over to encourage more eligibility for fuel allowance, which is paid through the fuel allowance season, which for the information of the House, will begin next week, at a time of peak usage. Looking at the energy side of the household benefits, we have increased the resources relating to the fuel allowance. Also, during the period we are discussing, we had the single energy payments and other supports. I am very focused. The fuel allowance payment has been identified as targeted at those most vulnerable to energy shocks. Within the capacity of the fuel allowance, we have the ability to respond in a dynamic fashion, as we did this year, by extending it for four weeks at a time of unexpected high energy prices.
Making improvements to the overall burden of fuel costs is positive, and the fact that there will be different measures to do that. I want to draw the Minister's attention in particular to the electricity aspect of it because the allowance that was there provided people with the capacity to buy a certain amount of electricity and its value has eroded over time. I will briefly stay focused on the electricity aspect of it. Could that be increased? Could it be linked with a certain number of units of electricity such that people who are on the allowance would have the peace of mind of knowing that if there is an increase or a reduction in the price of electricity in future, they would be somewhat protected because the allowance would cover a certain number of units rather than being at a fixed euro value? That value has eroded significantly in the past ten years or more by 70%.
I see why the Deputy wants to isolate the electricity part in the context of the household benefits package, but we cannot isolate it without looking at the other changes that have been made in the context of additional payments. I focused on the fuel announcement, particularly for the cohort that applied for household benefits - the change in income and in savings and investments, which will allow people to qualify for the fuel allowance. That is why we have 100,000 more people qualifying for the fuel allowance since 2020, never mind since 2013. In the context of the fuel allowance, people are not directed towards one form of energy. This is important to me and the Department. Through the fuel allowance, people have the flexibility to decide their own fuel and their own source of fuel. They are not directed towards any particular kind of fuel. As I said, we are constantly focused on how we can address energy challenges, and looking at the various challenges that exist. The expansion and flexibility of the fuel allowance programme is my best initiative and tool at a time of such volatility in the energy market.
