EC social security pensioners may qualify for fuel allowances under the national fuel scheme under the same general criteria applying to beneficiaries under the Irish social welfare schemes. An EC pensioner must, accordingly, live alone or only with certain persons in excepted categories. These categories include dependants and other qualified recipients. A claimant must be unable to provide for his heating needs and those of his dependants.
An EC pensioner is regarded as being unable to meet these heating needs if his total income does not exceed the appropriate maximum Irish contributory pension rate plus £5 per week. In assessing his total income for these purposes, his EC pension has to be converted to Irish pounds.
Because exchange rates can fluctuate frequently and because it would not be practicable to determine entitlement to fuel allowances (or other social welfare payments) each time that a particular currency exchange rate changed, it is necessary to adopt a practical approach to the problem. Accordingly, a mechanism, which is employed within the EC in relation to certain social security transactions between member states, is used to convert EC pensions when calculating means. This exchange rate is fixed under EC regulations in the first month of each quarter for use in all transactions in the succeeding quarter. The rate represents the average of the daily exchange rates for the month preceding the adoption of the rate. In appropriate cases assessment is made by reference to the more favourable of the two most recently publicised sets of rates. This can be more favourable than the current rates of exchange.
Certain claimants may feel they are losing the benefit of a more recent movement in exchange rates when these would be favourable. However, the current procedure avoids the need for very frequent reviews of existing entitlements in other circumstances. This gives an important degree of security to persons who have qualified for the allowance.