Written answers

Tuesday, 11 October 2005

Department of Social and Family Affairs

Pension Provisions

9:00 pm

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
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Question 292: To ask the Minister for Social and Family Affairs if he will consider increasing the income limit for old age pensioners in order that they will qualify for the free fuel allowance; if not, whether he will examine the amount of €50.60 and increase this amount; and if he will make a statement on the matter. [27810/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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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 towards their additional heating needs during the winter season. About 274,000 households receive a fuel allowance, at an expected cost of €85.4 million this year. In addition to fuel allowance, more than 300,000 pensioners and other households qualify for electricity or gas allowances through the household benefits package payable towards their heating, light and cooking costs throughout the year at an overall cost of €108.8 million in 2005. There is also a facility available through the supplementary welfare allowance scheme to assist people in certain circumstances who have special heating needs.

Pensioners and other social welfare groups have received significant increases in their welfare payment rates this year and in recent years. This has improved their income situation considerably in real terms relative to solid fuel cost increases and to price inflation generally. These higher rates of primary payments are payable over 52 weeks of the year.

People on a qualifying non-contributory pension or other social welfare payment are normally eligible for a fuel allowance without further means test, subject to the other conditions for entitlement. Other applicant households may have a combined income of up to €51 above the current maximum weekly contributory old age pension rate and still qualify for a fuel allowance. Based on this formula, the current upper limit income for fuel allowance eligibility is €230.80 for a single applicant or €349.80 for a couple, with further additions if there are any qualified dependent children or if the applicant is over 80 years of age.

This fuel allowance income limit increases each winter season in line with the reference rate of old age contributory pension. On this basis, there have been significant real increases in the income limits for fuel allowance applicants in recent years. This situation will continue in future winter heating seasons, in line with prevailing pension rates. The question of any additional increase in the income limit would have to be considered in a budgetary context.

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