Dáil Éireann Debate, Thursday - 28 September 2023
201. Deputy Marian Harkin asked the Minister for Social Protection if she will consider increasing the income threshold for fuel allowance for those in receipt of the living alone allowance (details supplied); and if she will make a statement on the matter. [41939/23]
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 criteria for Fuel Allowance are framed in order to direct the limited resources available to my Department in as targeted a manner as possible. To qualify for the Fuel Allowance payment, a person must satisfy all the qualifying criteria. This ensures that the Fuel Allowance payment is targeted at 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.
As part of the overall welfare Budget 2023 package of €2.2 Billion, a number of considerable reforms were made to the Fuel Allowance Scheme. These reforms included a new means threshold for those aged over 70 of €500 for a single person and €1,000 for a couple. The means threshold is based on gross income. In addition, for people aged 70 or over, the amount of capital (savings and investments) that is disregarded in the means test for Fuel Allowance was increase from €20,000 to €50,000. Savings over €50,000 are assessed on a proportionate basis only.
The weekly means threshold for those aged under 70 was also increased by €80 to €200 above the appropriate rate of State Pension (Contributory).
The increased allowable means threshold for people who are married, cohabiting or in a civil partnership acknowledges that the overall cost of living for this cohort is higher than for a single person and the fact that the Department pays an Increase for a Qualified Adult on many of its primary payments is recognition of this.
The Government will continue to monitor the cost-of-living situation closely and how it can support people on low incomes and those on social welfare payments who are at risk of fuel poverty. However, any further widening of the thresholds for accessing the fuel allowance scheme can only be considered while taking account of the overall policy and budgetary situation.
Finally, my Department 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.
