John Deasy (Waterford, Fine Gael)
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Question 193: To ask the Minister for Social and Family Affairs if he will raise the income limit for entitlement to the free fuel allowance to ensure that those recipients of the State non-contributory pension who avail of the new €100 a week earnings allowance do not lose the free fuel allowance; and if he will make a statement on the matter. [40788/06]

Séamus Brennan (Dublin South, Fianna Fail)
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People in receipt of the state non-contributory pension who avail of the €100 a week earnings disregard do not lose fuel allowance. They continue to satisfy the means test for fuel allowance for as long as they remain entitled to the state non-contributory pension.

Eligibility to the fuel allowance scheme is subject to means and other conditions. The main conditions that apply to the fuel allowance scheme are that a person must be in receipt of a qualifying payment, must satisfy a means test and must either be living alone or with a qualifying dependant. People who qualify for means-tested pensions or allowances such as state pension (non-contributory), long-term jobseeker's assistance or one-parent family payment do not have to undergo a further means test to qualify for fuel allowance. The majority of people who receive fuel allowances qualify because they satisfy the relevant means test for their primary weekly payment.

The fuel allowance income limit referred to by the Deputy applies in the case of contributory pensions such as state pension (contributory), state pension (transition) and invalidity pensions, which are not means tested. In the case of recipients of contributory pensions, any earnings from insurable employment and/or occupational pensions are normally regarded as means for the purpose of determining an individual's entitlement to a fuel allowance. A person may have a combined household income of up to €51 per week over and above the maximum rate of state pension (contributory) or savings/investments of up to €46,000, and still qualify for fuel allowance. This income limit was increased to €51 per week with effect from 1 June 2005.

Any changes in the means rules for the scheme, such as an increase in income limits, would have cost implications and would have to be considered in the context of the Budget and in the light of the resources available to me for improvements in social welfare generally.