Seanad debates

Thursday, 14 October 2021

Nithe i dtosach suíonna - Commencement Matters

Social Welfare Schemes

10:30 am

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party) | Oireachtas source

As the Senator knows, the Department of Social Protection pays a range of benefit and assisted income supports, including fuel allowance, which is available to long-term social welfare recipients. On 27 September 2021, the Minister for Social Protection, Deputy Heather Humphreys, announced the start of the national fuel scheme for the 2021-22 season. A budget of €292 million has been set aside for this season to pay an estimated 370,000 households. The purpose of the payment is to assist the households with their energy costs and the allowance represents a contribution towards the energy costs of a household. It is not intended to meet those costs in full and only one allowance is paid per household.

On Tuesday this week, in budget 2022, the fuel allowance was increased by €5 per week. The means threshold was increased and eligibility was extended for certain groups. As a result, it is now a payment of €33 per week for 28 weeks from October to April, giving a total of €924 per recipient in a full fuel season from now on.

Disablement benefit is a benefit under the occupational injuries scheme. It can be paid to a recipient who suffers a loss of physical or mental faculty because of an accident at work, an accident travelling directly to or from work or a prescribed disease contracted at work. The contribution requirements for the scheme are minimal when compared with other Department benefit schemes. Payment is only made when the level of disablement following an accident or disease is assessed at 15% or more. The rate of benefit depends on the degree of disablement. It is paid at a personal rate without increase for dependants.

In 2020, the estimated expenditure on the scheme was almost €70 million, with over 14,500 recipients supported through the scheme. People in receipt of disablement benefit without another payment may work full-time or part-time and continue to receive benefit payment. In other words, they are not prevented from generating additional income. In the alternative, it can be and is paid in conjunction with most social welfare payments, including the jobseeker's benefit, the jobseeker's allowance, disability allowance, the invalidity pension, the State pension and the one-parent family payment. It is not considered as means for most social welfare means-assessed schemes, except for fuel allowance, supplementary welfare allowance or the working family payment.

An incapacity supplement is an increase payable in addition to disablement benefit where a person is considered to be permanently incapable of work as a result of an occupational accident or disease and does not qualify for another social welfare benefit, such as illness benefit.The incapacity supplement is a qualifying payment for fuel allowance. Therefore, while disablement benefit on its own is a disqualifying payment for fuel allowance, because a person may continue to take up work or may receive another social welfare payment in parallel, qualification for incapacity supplement in addition to disablement benefit qualifies that recipient for fuel allowance, subject to satisfying all other criteria.

The criteria for fuel allowance are framed in order to direct limited resources available to the Department of Social Protection in as targeted a manner as possible. In budget 2022, the Government has already made a significant commitment to extending the fuel allowance both in terms of the value of the payment for recipients and extending the means of threshold, and shortening the time limit required of all jobseeker allowance and basic supplementary welfare allowance, SWA, recipients across the access scheme. This additional investment will cost €60 million in 2022.

Disablement benefit can be paid to people in employment and in addition to most social welfare payments. Under the supplementary welfare allowance scheme, exceptional need payments may be made to help meet an essential once-off cost which customers are unable to meet from their own resources. This may include exceptional heating costs.

Removing disablement benefit as a disqualifying payment for fuel allowance would require careful consideration within the overall policy and budgetary context and I understand that the Department is examining this matter.

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