Séamus Brennan (Dublin South, Fianna Fail)

The aim of the national fuel scheme is to assist householders who are in receipt of long-term social welfare or Health Service Executive payments with the cost of their additional heating needs during the winter season. Fuel allowances are paid for 29 weeks from the end of September to mid-April. A total of 274,000 customers benefit under the scheme at a cost of €85.4 million this year.

As a long-standing policy within the scheme, fuel allowances have not been payable in situations where a person has access to their own fuel supply or is benefiting from a subsidised or low-cost heating service, such as those provided by Dublin City Council at a number of its housing complexes. Local authority tenants who benefit from communal heating arrangements make a fixed contribution towards the cost of heating their homes, typically approximately €6 per week.

Unlike other tenants and social welfare customers generally, who must buy their own fuel at prevailing retail costs, these tenants are protected from increases in heating costs. The true cost of heating their homes is subsidised by Dublin City Council and the other local authorities concerned.

In the course of a routine review of fuel allowance payments, my Department recently ceased allowances which had been paid in error in a specific number of cases where the recipients were in or had moved to local authority accommodation with subsidised or low-cost heating. The allowances in question, which under current scheme rules should not have been put in payment in the first place, were withdrawn in these cases with effect from the start of this winter heating season. My Department did not seek to recover the money which had been paid in error.

In addition to the fuel allowance, eligible persons qualify for electricity or gas allowances though the household benefits package payable throughout the year. As currently structured, these allowances are linked to unit energy consumption, so people are protected against unit price increases. There is also a facility available through the supplementary welfare allowance scheme to assist people in certain circumstances with special heating needs.

I am reviewing the position regarding fuel allowances. In view of the cost implications, any changes must be considered in the context of the forthcoming budget.

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