The living alone allowance is payable to people of pensionable age who are in receipt of certain social welfare type payments and is intended to recognise the extra cost of living alone. The national fuel scheme is intended to help households which are dependent on long-term social welfare type payment and who are unable to provide for their own heating needs. Payment of the allowance is subject to a means test.
The people to whom this proposal mainly refers, therefore, are people who have not qualified for a social welfare type pension either because they have not a satisfactory record of contributions to the social welfare insurance scheme or are not in receipt of a non-contributory social welfare pension.
It is open to any person of pensionable age, whose means are inadequate, to apply to the Department for a non-contributory old age pension. If they satisfy the means test, they can qualify for a full or partial old age pension and, if living alone, may also qualify for a living alone allowance and for the national fuel scheme.
The estimated cost of extending the entitlement to persons who cannot qualify for social welfare entitlements is estimated at £15 million a year at current rates of payment. Such expenditure could only be considered in a budgetary context and in the light of available resources.