Dáil Éireann Debate, Tuesday - 27 February 2024
318. Deputy Willie O'Dea asked the Minister for Social Protection if she is aware that the fuel allowance means assessment includes income from the sale of a person’s own home even if they have downsized in retirement; if the Minister will change this rule to bring it in line with other social protection payments; and if she will make a statement on the matter. [9207/24]
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 €382 million in 2024. 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 the Department in as targeted a manner as possible and ensures that the Fuel Allowance payment goes to 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.
The assessment of capital reflects an expectation that people with reasonable amounts of capital and property are in a position to use that capital, or to realise the value of the property, to support themselves without having to rely solely on a means-tested welfare payment. While savings are assessed in the means test, most social protection schemes have a general capital disregard meaning the full amount of the capital is not assessed. The amount of capital disregarded can also vary depending on the scheme.
The standard formula for assessing the value of capital for those aged over 70 for Fuel Allowance purposes is as follows: the first €50,000 is fully disregarded; the next €10,000 is assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand.
A change in how means are assessed for Fuel Allowance purposes such as that proposed by the Deputy, would have to be considered in the context of budgetary negotiations, as well as having regard for the targeted nature of the scheme.
I hope this clarifies the matter for the Deputy.
