Dáil Éireann Debate, Wednesday - 3 February 2021
407. Deputy Michael Healy-Rae asked the Minister for Social Protection if the terms of payment for the fuel allowance will be extended in 2021 given the recent cold weather and the difficult circumstances that persons are experiencing due to Covid-19; and if she will make a statement on the matter. [5157/21]
View answerThe Fuel Allowance is a payment of €28.00 per week for 28 weeks (a total of €784 each year) from October to April, to an average of 372,000 low income households, at an estimated cost of €300 million in 2021. The purpose of this payment is to assist these households with their energy costs. The allowance represents a contribution towards the energy costs of a household. It is not intended to meet those costs in full. Only one allowance is paid per household.
My Department also pays an electricity or gas allowance under the Household Benefits scheme at an estimated cost of €265 million in 2021. This is paid at a rate of €35 per month, 12 months of the year.
In Budget 2021, the Government targeted one third of additional carbon tax revenues to go towards boosting the incomes of poorest in our society. Based on ESRI research, three key social welfare payments were targeted for increases in the budget as a result - the Fuel Allowance, the Qualified Child Allowance and the Living Alone Allowance.
From January 2021, the Fuel Allowance was increased by €3.50 per week to €28 for a period of 28 weeks, while the increase in carbon tax on solid fuels will not take effect until May 2021. This will ensure that recipients will benefit from the increased payment over this winter period.
Any decision to change the qualifying criteria or to extend the fuel allowance season will result in increased scheme budgetary requirements and would be a matter for Government to consider in the overall context of available financial resources in 2021.
If the Deputy is aware of a person who is experiencing particular financial difficulties, he could draw their attention to the fact that financial assistance is also available under the Exceptional Needs Payment and the Urgent Needs Payment schemes, on a year round basis, to assist with expenditure, which a person could not reasonably meet out of his/her weekly income, and which may include exceptional heating costs.
I hope this clarifies the matter for the Deputy.
