The Fuel Allowance is currently a payment of €24.50 per week for 28 weeks from October to April, at an estimated cost of €261.35 million in 2020. The purpose of the payment is to assist qualifying households with their winter heating costs. The allowance represents a contribution towards their heating costs and is not intended to meet these costs in full. Only one allowance is paid per household.
In Budget 2021, I announced an increase of €3.50 in the weekly rate of Fuel Allowance payable with effect from 4 January 2021. This increase takes account of the increase in carbon tax on solid fuels from May 2021 and allows recipients to benefit from the increased payment rate over this winter period.
Current figures indicate that approximately 369,000 households are in receipt of Fuel Allowance. Those who qualified for Fuel Allowance last year automatically receive the payment this year, provided they continue to fulfil the eligibility conditions, and do not need to re-apply.
Due to the administration of Fuel Allowance payments across different IT platforms, accurate numbers of claims received and disallowed are not readily available. However, approximate numbers of claims awarded and disallowed for the last eight years and to date in 2020 are provided in the table below.
Year Awarded Disallowed
2020 (to date) 28,646 19,761
2019 31,901 21,639
2018 32,399 21,727
2017 59,880 21,100
2016 26,504 18,021
2015 27,643 18,110
2014 28,422 15,064
2013 28,302 16,864
2012 21,359 13,976
Eligibility for fuel allowance is assessed based on a means test, a household composition test and only one allowance payable per household. While no breakdown of disallowance reasons is available, a claim will be disallowed where one or more of these conditions is not met.
Where a person does not qualify for Fuel Allowance but has significant outgoings and exceptional heating needs due to ill health or infirmity, they can apply for a heating supplement, a support paid under the Supplementary Welfare Allowance scheme. Each claim is assessed taking into account the individual circumstances of the case.
I trust this clarifies the matter for the Deputy.