The national fuel allowance scheme assists householders on long-term social welfare or health service executive (HSE) payments with meeting the cost of their heating needs during the winter season. A detailed review of the fuel allowance scheme was carried out a number of years ago. This review looked at alternatives to the weekly payment method including a single lump sum payment. A survey of recipients with the allowance, carried out in conjunction with the review, showed that the majority favoured weekly payments. The review recommended continuing with the weekly payment method.
While the payment of fuel allowance in lump sums could be advantageous for some people, there would also be disadvantages. The lump sum payment might not be used for the purpose of fuel purchase leading to hardship at a later stage and recourse having to be made to supplementary welfare allowance payments. A person's circumstances could change, leading to disqualification from payment of fuel allowance resulting in an overpayment having to be refunded. Payment of a lump sum in arrears would not be a viable option for persons with immediate needs during the winter period. Many oil companies provide facilities for making payment by instalments over a period of time which allows people to plan and budget for fuel expenses.
The Department is examining alternatives to the weekly payment method including lump sum payments. A number of issues need to be considered in detail including the administrative costs and processes involved in any changes to the current method of paying fuel allowance on a weekly basis. When all issues have been examined, a decision can be made in the best interests of all fuel allowance recipients.