Gay Mitchell (Dublin South Central, Fine Gael)
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Question 124: To ask the Minister for Social and Family Affairs the way his Department takes savings into account when determining entitlement to fuel allowance. [32466/06]

Séamus Brennan (Dublin South, Fianna Fail)
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The aim of the national fuel scheme is to assist householders on long-term social welfare or health service executive payments with meeting the cost of their heating needs during the winter season.

The scheme runs for 29 weeks of the year. Budget 2006 provided for an increase in the rate of fuel allowance of EUR 5.00 from EUR 9.00 to EUR 14.00 (EUR 17.90 in designated smokeless areas).

Eligibility to the fuel allowance scheme is subject to inter alia, a means test, which has been eased in recent years.

People who are in receipt of relevant means tested non-contributory payments do not have to undergo a further means test to qualify for a fuel allowance. The majority of people who receive fuel allowances qualify because they satisfy the relevant means test for their primary weekly payment.

In the case of contributory pensions which are not means tested, a person may have a combined household income of up to EUR 51 per week over and above the maximum rate of state pension (contributory) or savings/investments of up to EUR 46,000, and still qualify for fuel allowance.

Income from investments and money in savings accounts are not counted as means for means assessment purposes. Instead all cash values of investments and property, all money in savings accounts and cash-in-hand are added together and that total is equated to a level of weekly means in accordance with the following formula: the first EUR 20,000 of capital is disregarded; capital between EUR 20,000 and EUR 30,000 is assessed as equivalent to EUR 1 weekly means for each EUR 1,000 of capital; capital between EUR 30,000 and EUR 40,000 is assessed as equivalent to EUR 2 weekly means for each EUR 1,000 of capital; and capital above EUR 40,000 is assessed as equivalent to EUR 4 weekly means for each EUR 1,000 of capital.