Richard Bruton
Question:109. Deputy Richard Bruton asked the Minister for Social Protection if she is undertaking a review of the fuel scheme in the context of the rising prices and the ongoing climate crisis. [24506/22]
View answerTuesday, 17 May 2022
Questions (109, 150)
Sorca Clarke
Question:150. Deputy Sorca Clarke asked the Minister for Social Protection if consideration will be given by her Department for a review of the entitlement to the fuel allowance considering the increased costs of fuel and the rising costs of living. [24648/22]
View answerWritten answers
I propose to take Questions Nos. 109 and 150 together.
The Fuel Allowance is a payment of €33.00 per week for 28 weeks (a total of €924 each year) from October to April, at an estimated cost of €366 million in 2022. The purpose of this payment is to assist qualifying 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 Government is committed to protecting vulnerable households from the impact of energy costs. As part of the overall welfare budget package of €600m in increases secured for 2022, I increased the Fuel Allowance payment by €5 per week effective from Budget night. I also increased the weekly income threshold for Fuel Allowance by €20 which enables more people to qualify for this support. Furthermore, with effect from the start of the next fuel season, the qualifying period for Jobseeker’s and Supplementary Welfare Allowance recipients to access the Fuel Allowance payment will be reduced from 15 to 12 months.
The Government has, therefore, implemented significant expansions in relation to Fuel Allowance through Budget 2022.
To further help mitigate the effects of rising costs, the Government has announced significant additional expenditure which will make a positive impact on the incomes of all households in our country. As part of the measures an additional lumpsum payment of €125 was paid to eligible Fuel Allowance recipients in March and a further additional lump sum payment of €100 is due to be paid this week.
This means that low-income households will see an increase of 55% in Fuel Allowance support provided during this Fuel Allowance season compared to last season. A recipient household which would have received €735 in fuel season 2020/2021 would see an increase of €404 to €1,139 in Fuel Allowance payments in fuel season 2021/2022. When taken in conjunction with the electricity costs emergency benefit payment, such a household would have received over €600 in additional targeted Government supports over the course of this fuel season. €600 is the equivalent of over 18 weeks' additional fuel allowance, at current rates.
While the Department's schemes are reviewed on an ongoing basis, the provision of any further additional supports such as widening the eligibility criteria or increasing the weekly rate of Fuel Allowance would have cost implications and could only be considered while taking account of the overall budgetary context and the availability of financial resources.
Under the Supplementary Welfare Allowance scheme, Exceptional Needs Payments may be made to help meet an essential, once-off cost which customers are unable to meet out of their own resources, and this may include exceptional heating costs. Decisions on such payments are made on a case-by-case basis.
I hope this clarifies the matter for the Deputies.
Question No. 110 answered with Question No. 103.