Máire Hoctor (Tipperary North, Fianna Fail)

The fuel allowance is paid from the end of September to the end of April each year. It represents a contribution to a person's normal heating expenses. It was never intended to meet the costs in full. Improvements to the allowance in recent years include the easing of the means test and extending the duration of the payment from 26 to 29 weeks.

Budget 2006 provided for an increase in the rate of fuel allowance from €9 to €14 and €17.90 in designated smokeless fuel areas. This year's budget increased the rate by €4, from €14 to €18 and €21.90 in designated smokeless fuel areas. The primary social welfare rates were also increased to keep in line with inflation.

A detailed review of the fuel allowance was carried out in 1998 and the review examined alternatives to the weekly payment method, including a single lump payment. A survey of recipients of the allowance on a customer panel showed that a majority, 58%, preferred weekly payment; only 22% wanted the lump sum payment. Up to 12% favoured direct debit to a supplier while 8% would rather have two lump sum payments during the fuel season. The review recommended continuing with the current payment system. The Minister will keep all aspects of the scheme, including the lump sum payment, under review.