Households seeking bills aid to soar 20%

THE number of cash-strapped households seeking emergency help from the State to pay gas, electricity and heating bills will increase by at least 20% by the end of the year.

In spite of the continued economic boom, the numbers seeking urgent assistance at community welfare clinics has risen by 16% between 2004 and 2005, according to Department of Social and Family Affairs figures.

Community welfare officers said in the past year they have noted a continuing increase in low-income families who can’t afford basic bills like gas and electricity.

In 2004, some 8,453 people obtained €1.6 million in emergency payments but by July this year the figure had already reached €1.47m with 6,657 people receiving emergency assistance.

The expected 20% increase by the end of this year does not take into account the potentially devastating effects of the planned 34% hike in gas bills from October and the anticipated 10%-20% rise in electricity bills from next January.

Meanwhile, the Department of Social and Family Affairs expects that its natural gas allowance, administered to all over-70s and to recipients of blind pensions and disability allowance, will cost €500,000 more than anticipated this year — due to the planned gas increases.

The Department has budgeted to spend €9m this year in gas allowances and a further €110m in electricity allowances. Next year, the gas allowance is likely to cost €11m while the electricity allowance bill will cost another €22m.

The effects of fuel increases on low income families has already been flagged by the St Vincent de Paul charity, which said it has regularly been approached by people who owe up to €600 on utility bills.

They have also warned that the utility bill rises coupled with interest rate hikes could affect people on middle-bracket salaries, particularly if they have huge borrowings.

Figures released earlier this month by the Department of Social and Family Affairs found that one-in-seven homes with children of school-going age needed financial help to send their children back-to-school.

With prices of uniforms, school books and other expenses soaring, the department has set aside 50% more than last year’s €16.7m spend for its back to school clothing and footwear allowance.

Chairman of Impact’s National Community Welfare Officer Vocational Group, Des Stone, said he recorded a sharp increase in the east in people needing emergency help with bills.

“The need for warmth is a basic requirement yet it isn’t just people on welfare but also people on low incomes who can’t absorb such sharp rises,” he said.