The Department of Social and Family Affairs (DSFA) has for some time been concerned about the adequacy of existing welfare supports in addressing fuel poverty amongst low-income householders, and has met with Sustainable Energy Ireland on several occasions to discuss possible projects.

The primary tool used by the DSFA for assisting low-income householders is the Fuel Allowance, which in 2004 was paid to 269,000 householders. In 2004 the Fuel Allowance was paid at a rate of €9.00 per week (€12.90 in smokeless fuel areas) for 26 weeks of the year.

In addition to the Fuel Allowance, the DSFA provides a number of other fuel related social welfare benefits including the Free Electricity Allowance, Free Natural Gas Allowance and Free Bottled Gas Allowance.

In 2003, €82m was spent on the various DSFA fuel schemes.

The DSFA is concerned that the provision of additional social welfare payments does not tackle the energy efficiency aspect of fuel poverty. Furthermore, it does not represent an effective or environmentally friendly solution to the problem since the recipient householder may still have to live in an energy inefficient home that is cold and expensive to heat.

The DSFA is therefore keen to undertake research into alternative means of addressing fuel poverty, particularly through carrying out structural, energy efficiency improvements to homes occupied by low-income households.

A number of statutory agencies have also expressed an interest in undertaking research in relation to fuel poverty, including Sustainable Energy Ireland, the Combat Poverty Agency, and the Institute of Public Health. More recently the Department of Environment, Heritage and Local Government has also expressed interest.

One of the main drivers for this degree of interest is the high probability of carbon taxes being introduced by the Government. In that event, low-income householders are likely to be proportionately the most penalised by such a tax as they tend to use the most carbon intensive fuels and inefficient heating systems.

Accordingly there is a case for some funds to be recycled in favour of low-income householders who are likely to be proportionately the most penalised by such a tax. The options for the recycling of funds might take the form of income compensation and/or capital investment in structural improvements to dwellings occupied by low-income householders.

The purpose of this document is to put in place a proposed project outline as a starting point for developing a research project. It is intended that this be used as a basis for developing a research design that can meet the requirements of all potential participants and take advantage of the potential synergies arising from working in partnership.

Project Objectives

• To measure the benefits of installing energy efficiency measures into homes occupied by fuel poor householders in terms of:
  • Health
  • Comfort
  • The impact on household expenditure on fuel and electricity
  • The impact on the environment, including CO2 emissions reductions

• To inform Government policy as to the merits of implementing a programme to improve the energy efficiency of homes occupied by low-income households

• To explore the identification of fuel-poor households at the micro level

• To examine the logistical issues around addressing fuel poverty on an area basis and the potential for replicating this approach elsewhere in Ireland

Further information: contact our Research Section at research@combatpoverty.ie

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