Dáil Éireann Debate, Tuesday - 2 November 2021
624. Deputy Holly Cairns asked the Minister for Social Protection her views on increasing the amount of capital excluded in the calculation of eligibility for the fuel allowance for persons on qualifying social assistance payments. [53374/21]
View answerThe Fuel Allowance is a payment of €33.00 per week for 28 weeks (a total of €924 each year) from October to April, to 365,000 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.
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. It is important to note that all recipients of non-contributory social assistance payments are accepted as satisfying the means-test for fuel. People who are in receipt of a qualifying contributory payment must also satisfy a means test.
The standard capital means assessment rules for State Pension (Contributory) purposes apply to Fuel Allowance applicants who have capital. This allows for the disregard of the first €20,000 of capital that is assessed against an applicant.
A fuel applicant and members of his/her household may have a combined assessable income of up to €100.00 a week above the appropriate rate of State Pension Contributory (i.e., equivalent to capital/savings of €57,999) and qualify for a payment. This ensures that the fuel allowance payment goes to those who are more vulnerable to fuel poverty including those reliant on social protection payments for longer periods and who are unlikely to have additional resources of their own.
In Budget 2022 I announced that from January 2022 that the combined assessable income allowable will increase to €120 a week above the appropriate rate of State Pension Contributory (i.e., equivalent to capital/savings of €62,999).
Therefore, taking the above into consideration, any decision to further increase the fuel allowance means test by increasing the amount of capital that is disregarded could only be considered in the overall budgetary context and the availability of financial resources.
I hope this clarifies the matter for the Deputy.
