The schemes administered by my Department which assist pensioners with energy costs include the national fuel scheme and the electricity or gas allowance. The aim of the national fuel scheme is to assist householders on long-term social welfare or Health Service Executive payments with meeting the cost of their additional heating needs during the winter season. The fuel allowance is paid for 29 weeks from end-September to mid-April. Budget 2006 provided for an increase in the rate of fuel allowance of €5, from €9 per week to €14 per week, €17.90 in designated smokeless areas.
In order to qualify for the national fuel scheme a person must be in receipt of a qualifying payment, satisfy a means test and be living alone or only with certain excepted people. The purpose of these qualifying conditions is to ascertain the ability of applicant households to meet their normal heating requirements out of their resources and to ensure the maximum amount of support is targeted at those most in need of assistance in meeting their heating needs.
The household benefits package, which comprises the electricity or gas allowance, telephone allowance and television licence schemes, is generally available to people living permanently in the State, aged 66 years or over, who are in receipt of a social welfare type payment or who satisfy a means test.
The weekly means income limit fixed for this purpose is the maximum personal rate of old age contributory pension, which is set at €193.30 for a recipient aged 66 to 79 years, and €203.30 for a recipient aged 80 years or over; plus €38.09; plus any increases for a qualified adult, dependent children, living alone, as appropriate. The make-up of this income limit means that it increases automatically each year on foot of the budget increases in pension rates.
This means that a single pensioner who lives alone can have an equivalent weekly income of €231.39 per week and qualify for the free schemes. A pensioner living with a qualified adult can have an equivalent weekly income of up to €360.19 per week and qualify for the free schemes.
The package is also available to carers and people with disabilities under the age of 66 who are in receipt of certain welfare type payments. People aged over 70 years of age can qualify regardless of their income or household composition.
The electricity allowance covers normal standing charges and up to 1,800 units of electricity each year. In February 2002, the number of units covered by the allowance increased by 20%, from 1,500 units to 1,800 units. VAT due on this standard allowance is also covered.
The natural gas allowance is an alternative to the electricity allowance for people whose homes are connected to a natural gas supply. For people paying for natural gas on the Bord Gáis standard tariff, from last October, the natural gas allowance covers a credit of up to €59.71 in each two-monthly billing period in winter and a credit of up to €44.68 in each two-monthly billing period in summer.
This increase met the 25.26% increase in natural gas tariffs. Recipients on one of the other tariffs can get an allowance up to this value. Proposals to increase the value of the electricity and gas allowances or to further increase the fuel allowance are kept under review for consideration in a budgetary context.