I propose to take Questions Nos. 999 to 1001, inclusive, 1018 and 1029 together.
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 heating needs during the winter season.
Some 264,400 people (145,800 with basic fuel allowance and 118,600 with smokeless fuel supplement) benefited from the scheme in 2005 at an annual cost of €85.4m. It is estimated that some 274,000 people (151,000 with basic fuel allowance and 123,000 with smokeless fuel supplement) will benefit in 2006 at an estimated annual cost €125.1m.
In addition to the fuel allowance, over 320,000 pensioner and other households qualify for electricity or gas allowances through the household benefits package, payable towards their heating, light and cooking costs throughout the year, at an overall cost of €109 million in 2005. As currently structured, these allowances are linked to unit energy consumption, so that the people concerned are protected against unit price increases in electricity or gas. As recently announced, free electricity units will be increased from 1,800 to 2,400 per annum with effect from 1 January 2007 with pro rata increases for those customers getting gas allowance from 1 October 2006.
People who have exceptional heating costs, by virtue of a particular infirmity or medical condition which they are unable to meet out of household income, may apply to their local community welfare officer for a special heating supplement under the supplementary welfare allowance scheme.
The cost of the fuel allowance scheme annually for the past 5 years has increased from €61m in 2001 to €85m in 2005. Details are set out in the table below.
Eligibility to the fuel allowance scheme is subject to means and other conditions. The main conditions that apply to the fuel allowance scheme are that a person must be in receipt of a qualifying payment, must satisfy a means test and must either be living alone or with a qualifying dependant.
People who already qualify for means-tested pensions or allowances such as old age (non-contributory) pension, long-term unemployment assistance or one-parent family payment do not have to undergo a further means test to qualify for fuel allowance. The majority of people who receive fuel allowances qualify because they satisfy the relevant means test for their primary weekly payment.
In the case of contributory pensions such as old age (contributory) pension, retirement pension and invalidity pensions, which are not means tested, a person may have a combined household income of up to €51 per week, or savings/investments of up to €46,000, over and above the maximum old age (contributory) pension rate and still qualify for fuel allowance.
The fuel allowance income limits increase each season in line with the increases in the old age (contributory) pension rate.
Any changes to the Fuel Allowance Scheme would have cost implications. Changes would have to be considered in the context of the Budget and in the light of the resources available for improvements in social welfare generally. It is estimated that abolishing the means test could more than double the cost of the scheme, while abolishing the means test for people aged 80 or more would cost an additional €23m perannum.
Expenditure on Fuel Allowance 2001-2005
Year
|
Cost
|
|
€m
|
2001
|
61.1
|
2002
|
80.5
|
2003
|
83.2
|
2004
|
84.7
|
2005
|
85.4
|