Dáil Éireann Debate, Wednesday - 20 March 2024
773. Deputy Claire Kerrane asked the Minister for Social Protection if she plans to continue increasing the weekly income threshold for the over 70s when accessing the fuel allowance; and if she will make a statement on the matter. [12959/24]
View answerThe 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.
The criteria for Fuel Allowance are framed in order to direct the limited resources available to my Department in as targeted a manner as possible. To qualify for the Fuel Allowance payment, a person must satisfy all the qualifying criteria including a means test and the household composition criteria. The means test ensures that the recipient has a verifiable income need and that resources are targeted to those who need them most.
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. This was a very significant increase in the means threshold and allowed many more households to qualify for the fuel allowance payment.
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.
In January 2024, the allowable means for those aged over 70 was increased to €512 for a single person and €1,024 for a couple. This was to ensure that no one lost their entitlement to the Fuel Allowance payment due to the increase in weekly rates of Social Welfare payments.
Any further widening of the weekly income threshold for accessing the fuel allowance scheme can only be considered while taking account of the overall policy and budgetary situation.
I trust that this clarifies the matter for the Deputy.
