The national fuel allowance scheme assists householders on long-term social welfare with meeting the cost of their heating needs during the winter season. The allowance represents a contribution towards a person's normal heating expenses. It is not intended to meet those costs in full. Fuel allowance is currently paid at €20 per week during the winter season. Some 410,000 customers receive the fuel allowance at an annual cost of €208 million. The allowance is subject to a means test and is paid only to those who live alone or with certain exempted people.
Having examined the possibility of paying the fuel allowance as a lump sum it is clear that it could result in a number of difficulties for recipients. In particular, if the payment was given in advance as a lump sum, there could be significant over-payments if a recipient’s circumstances changed during the payment season. If it was paid in arrears, it obviously would result in further budgeting difficulties for individuals and their families.
Many energy companies, including oil suppliers, provide budget facilities for making payment by monthly instalment over a period of time which allows people to plan and budget for fuel expenses. I am satisfied that this arrangement is sufficient to meet the needs of customers.
