David Stanton (Cork East, Fine Gael)
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Question 417: To ask the Minister for Social and Family Affairs the number of contributory state pensioners in receipt of the fuel allowance; the percentage of the number of contributory state pensioners this figure represents and the percentage of fuel allowance recipients; and if he will make a statement on the matter. [38009/06]

David Stanton (Cork East, Fine Gael)
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Question 418: To ask the Minister for Social and Family Affairs the number of households experiencing fuel poverty here; the number of people in receipt of the fuel allowance who do not receive a means tested social welfare payment in particular with regard to people of pension age; his plans to ease qualification criteria for the fuel allowance; and if he will make a statement on the matter. [38011/06]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 417 and 418 together.

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. Fuel allowances are paid for 29 weeks from end-September to mid-April. The allowance represents a contribution towards a person's normal heating expenses. It is estimated that some 274,000 people (151,000 with basic fuel allowance and 123,000 with smokeless fuel supplement) will benefit in 2006 at an estimated annual cost €125.1m.

40% of fuel allowance recipients, some 106,500 people, do not receive a means tested social welfare payment. This includes 60,500 who have the smokeless supplement in addition to the basic fuel allowance. The number of people on state pension (contributory) who have a fuel allowance is almost 16,000 (including 9,755 with the smokeless supplement), 12% (approximately) of all people on state pension (contributory) and 6% of all fuel allowance recipients.

Some 74,800 people over 65 years on a range of social welfare payments are in receipt of fuel allowance. These payments include state pension contributory and transition, widow/er's and guardian's contributory, deserted wife's benefit. This is 22% of all people on these schemes and 27% of all fuel allowance recipients.

The term 'fuel poverty' has been described as the inability to afford adequate warmth in a home, or the inability to achieve adequate warmth because of the energy inefficiency of the home. Various studies have been conducted on this issue in recent years, with varying estimates of the numbers and types of households affected by fuel poverty as defined in this way. I am not aware of any definitive estimates of the number of households in this situation.

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 €51.00 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 €244.30 for a single applicant or €373.10 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 state pension (contributory). On this basis, there have been significant real increases in the income limits for fuel allowance applicants in recent years. This situation will continue automatically in future winter heating seasons, in line with prevailing pension rates.

Any changes to the fuel allowance scheme such as rates of payment or easing of qualifying criteria would have significant cost implications and would have to be considered in the context of the Budget and in the light of the resources available for improvements in social welfare generally.