Dáil Éireann Debate, Wednesday - 20 March 2024
771. Deputy Claire Kerrane asked the Minister for Social Protection if she will examine the income thresholds for the fuel allowance in the case of under 70s in light of recent increases for those aged over 70 years; and if she will make a statement on the matter. [12957/24]
View answer772. Deputy Claire Kerrane asked the Minister for Social Protection if she will consider those aged under 70 years with modest occupational pensions which they worked for, who are unable to access the fuel allowance; if she will examine this cohort in the context of the next Budget; and if she will make a statement on the matter. [12958/24]
View answerI propose to take Questions Nos. 771 and 772 together.
The 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 my Department in as targeted a manner as possible. To qualify for the Fuel Allowance payment, a person must satisfy all the qualifying criteria including a means test and the household composition criteria. The means test ensures that the recipient has a verifiable income need and that resources are targeted to those who need them most.
In January 2023 the weekly means threshold for those aged under 70 was increased by €80 to €200 above the appropriate rate of State Pension (Contributory). This was a very significant increase in the allowable means and ensured that those who previously were just above the allowable means for fuel allowance purposes were able to qualify for the payment.
In January 2024, the allowable means for those aged over 70 was increased to €512 for a single person and €1,024 for a couple. This was to ensure that no one lost their entitlement to the Fuel Allowance payment due to the increase in weekly rates of Social Welfare payments.
For those aged under 70 the allowable means is linked to the rate of State Pension Contributory and the allowable means for this cohort was automatically increased when the weekly rate of State Pension Contributory payable increased.
Any further widening of the weekly income threshold for accessing the fuel allowance scheme can only be considered while taking account of the overall policy and budgetary situation.
I trust that this clarifies the matter for the Deputy.
