Dáil Éireann Debate, Wednesday - 31 May 2023
92. Deputy Violet-Anne Wynne asked the Minister for Social Protection the projected cost of extending the fuel allowance to all recipients of the working family payment; and if she will make a statement on the matter. [26703/23]
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 €412 million in 2023. The purpose of this payment is to assist these households with their energy costs. Only one allowance is paid per household.
The estimated cost of extending the Fuel Allowance payment to all those in receipt of the Working Family Payment (WFP), irrespective of household composition and means is €38.6 Million. This estimate is based on 41,761 additional recipients and a weekly Fuel Allowance rate of €33 and a payment period of 28 weeks.
The Fuel Allowance is paid to social welfare recipients such as pensioners, people with disabilities, lone parents and the long-term unemployed in recognition of their long-term financial dependence on their social welfare payment for all or most of their income.
People on long term payments are unlikely to have additional resources of their own and are more vulnerable to poverty, including energy poverty. It is for this reason that my Department allocates additional payments, supports and resources such as Fuel Allowance to this cohort of claimants.
The Working Family Payment gives extra financial support to families with children with rates depending on their incomes and family size. It is not considered a long-term Social Protection payment and recipients are in full time employment and are more likely to have additional resources.
While Working Family Payment is not a qualifying payment for Fuel Allowance, people may receive Fuel Allowance while on Working Family Payment if they are in receipt of One Parent Family Payment.
In response to an amendment tabled at Committee Stage of the Social Welfare Bill 2023, I have asked my Department officials to prepare a report on the potential extension of eligibility for the Fuel Allowance to those in receipt of the Working Family Payment. The work is ongoing and when finished, I will carefully consider its contents and any recommendations that it may contain.
I trust that this clarifies the matter for the Deputy.
