Dáil Éireann Debate, Tuesday - 10 May 2005
269 Mr. Bruton asked the Minister for Social and Family Affairs if he will consider raising the €50 limit applied to additional income for persons wishing to qualify for the national fuel scheme as a very targeted method of helping pensioners on low income to deal with the high cost of winter heating. [15131/05]
Amharc ar fhreagraThe aim of the national fuel scheme is to assist householders who are in receipt of long-term social welfare or health board payments and who are unable to provide for their extra heating needs during the winter season.
To qualify for an allowance under the national fuel scheme, an applicant must be in receipt of a qualifying payment, live alone or only with a dependant spouse or partner, child or children, or with other eligible recipients and be unable to provide for his or her heating needs from his or her own resources.
People who are in receipt of relevant non-contributory social assistance payments do not have to undergo a further means assessment for fuel allowance purposes. An income test applies in the case of other applicants, whereby they and members of their household may have a combined assessable income of up to €51 a week above the appropriate maximum social welfare rate applicable in their circumstances and still qualify for the fuel allowance.
Based on the new capital means assessment rules that I introduced with effect from 1 June 2005 for old age pension purposes, a fuel allowance applicant may have savings or investments of up to €46,000 above the appropriate maximum Irish contributory pension or benefit rate and qualify for fuel allowance from the start of the next winter heating season.
That formula provides an in-built annual indexation of the eligibility limits for fuel allowance purposes. Those income limits are increased automatically in line with the prevailing rate of the relevant allowance or pension to which the applicant has entitlement.
More generally, the significant increases in recent years in primary social welfare payment rates, such as the old age pension, have improved the income position for people dependent on the social welfare system. Those rates are payable throughout the year and are intended to cover basic living costs, including cooking and heating, supplemented where applicable by the fuel allowance during the winter heating season. Many households also qualify for electricity or gas allowances throughout the year under the social welfare household benefits scheme. In addition, a heating supplement may be payable through the supplementary welfare allowance scheme in cases of individual special need.
Apart from the indexation of the fuel allowance income limits each year in line with general social welfare pension or benefit increases, there are no plans to increase fuel allowance scheme rates or eligibility criteria. Any such change to the scheme would have to be considered in a budgetary context and in the light of other priorities.
270 Mr. Bruton asked the Minister for Social and Family Affairs if he will consider improving the level of fuel support under the free schemes, which are confined to limited assistance on only one or other of electricity or gas bills; and if he will make a statement on the matter. [15132/05]
Amharc ar fhreagraOne of the components of the household benefits package is the electricity allowance. That allowance was introduced in 1967 to ensure a basic standard of heat and light for specific targeted groups of people. The electricity allowance covers normal standing charges and up to 1,800 units of electricity each year.
Over time, the options of claiming bottled gas allowance or electricity — group account — allowance were introduced to facilitate those who were not connected to an electricity supply or were in self-contained accommodation.
The natural gas allowance was introduced as an alternative for those who were connected to a natural gas supply. For those incurring more expenditure on their gas bills than on their electricity bills, having the allowance applied to their gas bill was of more advantage.
A range of proposals has been made to extend the free schemes to include other groups and to increase their value. Those proposals are kept under review in the context of the objectives of the scheme and budgetary resources.
