Dáil Éireann Debate, Tuesday - 3 October 2023
411. Deputy Cormac Devlin asked the Minister for Social Protection if, given the continued cost of energy, she will examine increasing the capital thresholds for eligibility for fuel allowance for persons aged over 65, in particular for property held in Ireland and abroad where no income is being generated (i.e., a modest holiday home); and if she will make a statement on the matter. [42259/23]
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. 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 including the introduction of changes for those aged over 70.
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).
Any decision to further increase the fuel Allowance allowable means or the capital disregard would have budgetary consequences and would have to be considered in an overall policy and budgetary context.
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.
