Dáil Éireann Debate, Tuesday - 11 October 2022
479. Deputy Bríd Smith asked the Minister for Social Protection if those pensioners who may qualify for the fuel allowance under the new threshold limits will be automatically granted the payment; if not, if they must apply; if so, if they must apply in advance of 1 January 2022; and if she will make a statement on the matter. [49488/22]
Amharc ar fhreagraThe Fuel Allowance is a payment of €33 per week for 28 weeks (a total of €924 each year) from late September to April, at an estimated cost of €366 million in 2022. The purpose of this payment is to assist these households with their energy costs. The allowance represents a contribution towards the energy costs of a household. Only one allowance is paid per household.
As part of the overall social welfare Budget 2023 package of almost €2.2 Billion, I was pleased to have secured a major expansion of the Fuel Allowance Scheme, which will benefit up to 81,000 new households for the first time.
One of the reforms that I was pleased to announce is that, from January 2023, a new means threshold will be introduced for people aged 70 years and over. The new means threshold will be €500 for a single person and €1,000 for a couple. This is a significant expansion of the means threshold for those aged 70 or over. In addition, the standard means test threshold for those under 70 is being increased from €120 to €200 over the maximum State Pension Contributory rate.
My Department’s immediate priority is to issue 8 separate cost of living lump sum payments worth €1.2 Billion between now and Christmas and the Deputy will appreciate that each of these payments involves significant IT development work and resources.
The new means test thresholds for Fuel Allowance will take effect from January 2023. I can confirm that there will be an application process involved and further details in relation to the application process will be advertised once the operational and IT requirements for the new measure have been finalised.
I hope this clarifies the matter for the Deputy.
