News
Warm, Safe, Connected – A report by St. Vincent De Paul
After attending the launch of Warm, Safe, Connected by St. Vincent De Paul (SVP), we were devastated to learn of the far-reaching consequences that the current energy crisis has had across Ireland. We felt the need to share some of the more shocking statistics that may have had a profound impact on our members.
In 2022, SVP Received 230,000 requests for assistance from the public – up to 1200 requests per day in busy periods (December). People requested assistance on more than one issue, most often being the combination of food and energy. The report highlights the connection between energy and people’s health such as the stress and anxiety over the difficulty in meeting costs as well as sacrificing heating in order to feed the family, and vice versa.
Energy Poverty is not evenly distributed, with some groups being more heavily impacted than others. This includes older people, members of minority groups and people living alone.
Deputy TD Neasa Hourigan acknowledged the inadequacy of one-off payments and the realisation that targeted and forward-thinking measures are needed. She admitted that Government is resistant to systemic change which locks the Government in to something that is “progressive and something that is real”. Questions were raised around the legislative definition of a “vulnerable customer”, suggesting this should be broadened to consider circumstantial and contextual factors.
Nat O’Connor of Age Action highlighted the impact of the energy crisis on older people who rely on a fixed income with a spending power that has depreciated significantly due to inflation. In the first half of 2022 (before the latest rise in inflation), 1 in 14 older persons went without heating at some point, with 1 in 16 older persons being unable to afford to keep their home sufficiently warm. He noted that multiple reports indicate that Ireland has the highest rate of Excess Winter Mortality in Europe due to a damp climate, long heating season and poorly insulated housing which has been compounded by the current energy crisis.
Some of the recommendations made by SVP to combat this crisis include benchmarking social welfare rates, retrofitting support for inadequate housing, improving measures to avoid disconnections and increasing the eligibility criteria of ‘vulnerable customers’.
To read the summary of the report along with SVP’s 12 recommended actions, click HERE.
The full report can be accessed HERE.
Cost-of-Living ‘Package’ – Generous term for a not-so-generous promise
The ISCP are disappointed with the Cost-of-Living Package that was finally announced on Tuesday 21st February. While we welcome any and all support, we are consistently let-down by yet another string of temporary measures. Measures that only offer one-off support for energy bills while people struggle to meet the everyday cost of living. We worry about future planning and implore the Government not to leave this on the long finger.
This was further compounded by the latest CSO Survey on Income and Living Conditions (SILC) which revealed that 13.1% of people were at risk of poverty in 2022. Following on from our last post calling for Government to consider a Wealth Tax, the SILC showed that the richest 20% of people had 4 times the income of the poorest 20%.
From our own member’s point of view, the age group most at risk of poverty is Age 65 and over. We know it is not surprising, but the report affirmed that the largest year on year change to occur, jumping from 11.9% in 2021 to 19% in 2022 is among those over 65 years. The report also highlighted that an income of €309 places people below the poverty line. €309 versus the State Pension of €265.00 at its highest rate with many older people living on less than this, in particular women.
If there is no consideration in planning for a secure and safe income for our aging population, these numbers will continue to increase.
The table below outlines the measures that were announced as part of the Cost-of-Living package:
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Welfare: Recipients of weekly welfare payments such as pensioners will receive a lump sum of €200 on top of their usual payment. This bonus is due to be paid in April and May. |
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Excise Duty: Lowered rates of excise duty levied on motor fuels are to be increased on a phased basis. |
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Energy Costs: The temporary reductions in VAT on gas and electricity, from 13.5% to 9%, will be extended to 31 October 2023. The Government are maintaining their promise of €200 Electricity Credit to every household in March 2023. |
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Inpatient Hospital Charges: The Government are maintaining their promise of abolishing inpatient charges in all public hospitals from April 2023. Currently, the public in-patient charges range from €80 per day up to a maximum of €800 in a year (including day-case charges). |
To read the CSO Survey on Income and Living Conditions in full, you can click HERE.
If you are worried or struggling with the current cost-of-living crisis, take a look at Citizen’s Information Website to see what you may be entitled to.
Targeted Measures needed to support rising costs of living
As the Government meet to finalise plans for cost of living supports, the Irish Senior Citizens Parliament call for targeted measures for those living on the state pension. However welcome the one-off measures are in light of energy bills, this is not a long-term solution. People living on an income that cannot meet the on-going day to day costs of food, heat and light, not to mention the cost of a car which is a necessity if you live in rural Ireland, require a more long-term solution
In the last Budget, the Government were aware that a minimum increase of €20 was needed to ensure that people dependent on the State Pension did not fall below the poverty line. They now need to adjust the pension to reflect this shortfall. The €1.2 billion allocated for untargeted energy support payments might be better spent on core social transfers.
We understand that the cost-of-living increases affect all people however, the ability to meet the rising costs is not universal. While it is very difficult for some, it does not present the challenge of ‘eating or heating’. For people living on the state pension of €265.30, there is no capacity to save for ‘rainy days’ or savings to meet the unprecedented energy bills.
In the light of well publicised profits for energy companies while people on a state pension struggle to meet energy bills, the need to address the inequality is crucial. This coupled with the Oxfam Report on Wealth require an immediate action. This includes the considerations on a Wealth Tax and/or windfall tax on energy providers and oil companies. The Irish Senior Citizens Parliament support the call from Social Justice Ireland for action on this issue.
Call to Government on Cost of Living
The recent Budget, while not fully addressing the reality of the increases in the cost of living, did offer some relief by way of increase of €12.00 to all on social welfare payments. The one-off payments and changes to supports also offered some financial relief, albeit on a short-term basis.
However, we are now hearing of difficulties for people in accessing these supports. Across the Cost of Living Coalition we are hearing of people who have applied for supports and have had no response or cannot get an appointment with a Community Liaison Officer. This is particularly difficult for people seeking emergency support.
We eagerly await to hear the particulars of the new cost-of-living package to be announced next Tuesday. We continue to lobby for more targeted, viable and sustainable supports for older people in Ireland.