Dáil Éireann Debate, Thursday - 13 October 2022
26. Deputy Paul Murphy asked the Minister for Social Protection if she will bring forward the extension of eligibility for the fuel allowance, currently not due to come into effect until January 2023, given that the cold weather starts long before then; and if she will make a statement on the matter. [50722/22]
View answerThe Fuel Allowance is a payment of €33 per week for 28 weeks (a total of €924 each year) from late September to April, at an estimated cost of €366 million in 2022. 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. Only one allowance is paid per household.
In Budget 2023, I was pleased to announce the largest ever expansion of the Fuel Allowance Scheme. As part of this, from January 2023, a new means test will be introduced for Over 70s. Under the new means test, a single person over 70 can have income of €500 per week and a couple can have income of €1,000 per week and still qualify for Fuel Allowance. This was a priority for me as part of Budget 2023 and is in recognition of the fact that older people are more vulnerable to the cold. Also, from January 2023, the standard means test for persons under 70 will be increased by €80 from €120 to €200 over the maximum State Pension Contributory. In addition, the half-rate Carer's Allowance payment and Disablement Benefit will be disregarded when assessing means for Fuel Allowance purposes. It is estimated these measures combined will bring an additional 81,000 households into the Fuel Allowance Scheme from January. My Department is already working on developing the IT systems and operational requirements to give effect to these changes.
As part of the Government's cost of living measures in Budget 2023, I announced that, in November 2022, a further lump sum payment of €400 will be paid to Fuel Allowance recipients to alleviate the burden of rising energy prices and inflation. This further lump sum payment will be available to households that have an entitlement to the fuel allowance payment on the week that the lump sum payment is paid. While the lump sum payment will not be available to households that qualify for the fuel allowance payment in January, by qualifying for the Fuel Allowance payment they will be receiving an extra €924 in a full fuel season to help with the cost of heating their home.
Some of the households to whom access is extended from January may also benefit from cost-of-living measures announced in the Budget such as the double week in social welfare payments in October and December and the living alone payment of €200 in November. The enhanced electricity credit of €600 is another important Government measure announced in the Budget. This will also benefit households to whom access to Fuel Allowance is extended to from January. The first €200 will be applied to electricity bills before Christmas. As the eligibility for Fuel Allowance has been significantly enhanced, and will require time to implement, the extended eligibility will take effect in January 2023.
Finally, the Department of Social Protection provides Additional Needs Payments as part of the Supplementary Welfare Allowance scheme for people who have an urgent need, which they cannot meet from their own resources. These payments are available through our Community Welfare Officers.
I hope this clarifies the matter for the Deputy.
