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Dáil

Written answer

Social Welfare Benefits

30. Deputy Alan Farrell asked the Minister for Social Protection for an update on the recent expansion to the fuel allowance scheme; and if she will make a statement on the matter. [37611/24]

Comment on this
Heather Humphreys Minister for Social Protection Fine Gael

The Fuel Allowance is a payment of €33 per week for 28 weeks (a total of €924 each year) from late September to April, at an estimated cost of €382 million in 2024. The purpose of this payment is to assist these households with their energy costs. Only one allowance is paid per household.In Budget 2023, the Government announced the largest ever expansion of the Fuel Allowance Scheme.

• In January 2023 a new means threshold was introduced for people aged 70 years and over. The new means threshold was €500 for a single person and €1,000 for a couple.

• In addition, for people aged 70 or over, the amount of capital that is disregarded was increased from €20,000 to €50,000. Savings over €50,000 are assessed on a proportionate basis only.

• The weekly means threshold for those aged under 70 was increased by €80 to €200 above the appropriate rate of State Pension (Contributory). The means threshold for a single person aged under 70 is €477.30. The means threshold when a qualified spouse, civil partner or cohabitant is aged under 66 is €662 and the means threshold when a qualified spouse, civil partner or cohabitant is aged over 66 is €725.90.

• Also from January 2023, Disablement Benefit and Half-rate Carers Allowance payment are disregarded when assessing means for Fuel Allowance purposes. Disablement Benefit also no longer disbars a household from receiving the Fuel Allowance payment.

These measures resulted in a significant number of additional households qualifying for the Fuel Allowance payment with an average of 411,000 households qualifying for the payment during the 2023/24 fuel season.Further expansion of the Fuel Allowance scheme also occurred in 2024 with the following measures introduced:

• The Fuel Allowance Guidelines were amended from the 1st February 2024 so that a person(s) renting a room under the prescribed conditions that allow the Fuel Allowance applicant to benefit from the rent-a-room disregard, are also disregarded for household composition and means testing purposes when assessing an applicant’s entitlement to Fuel Allowance.

• The allowable means for those aged 70 and over was increased to €512 a week for a single person and to €1,024 a week for a couple.

• The period a person spends on an Employment Support Scheme can now be counted when assessing if a person satisfies the qualifying period criterion for Fuel Allowance purposes. Therefore, claimants who move to an Employment Support Scheme who were previously in receipt of short-term Jobseeker’s Allowance/Basic Supplementary Welfare Allowance can accrue entitlement to Fuel Allowance. Those who move onto a qualifying social welfare payment for Fuel Allowance, following completion of an Employment Support Scheme, will also be able to use the period spent on the Employment Support Scheme to satisfy the payment period requirement.

• Income from any maintenance received in respect of a child will no longer be assessed as means for Fuel Allowance purposes. Compensation awards to people under the Mother and Baby Institutions Payment Scheme, together with income from the investment of that money will also be disregarded.

I hope this clarifies the matter for the Deputy.

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