Pat Breen (Clare, Fine Gael)
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Question 395: To ask the Minister for Social and Family Affairs the reasons parents of children with cerebral palsy are means tested for carer's allowance; and if he will make a statement on the matter. [8655/07]

Séamus Brennan (Dublin South, Fianna Fail)
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Carer's allowance is a social assistance payment paid to people who are providing full time care and attention to a person who needs such care. In line with other social assistance schemes, a means test is applied to the carer's allowance so as to ensure that resources are directed to those in greatest need. This means test which has been eased significantly over the years applies to all applicants for carer's allowance. Following Budget 2006, the earnings disregard for a couple was set at €580 per week, which is equivalent to gross average industrial earnings. In Budget 2007, I increased this to €640 per week for a couple from April 2007. This increase means that, a couple with two children will be able to earn in the region of €36,000 per year and still qualify for the maximum rate of carer's allowance as well as the associated free travel and household benefits. This measure exceeds the commitment in Towards 2016 to ensure that those on average industrial earnings can continue to qualify for a full carer's allowance.

From June 2005, the respite care grant was extended to all carers who are providing full time care and attention to a person who needs such care, regardless of their income. Those persons in receipt of other social welfare payments, excluding jobseeker's allowance and benefit, are entitled to this payment subject to meeting the full time care condition. From June 2007, the level of the grant will increase by €300 to €1,500 per year.

I am committed to working for, and with, carers to deliver increased benefits, supports, and services for them and their families.

Barry Andrews (Dún Laoghaire, Fianna Fail)
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Question 396: To ask the Minister for Social and Family Affairs his view on allowing those in receipt of the free fuel allowance who don't use the full amount to avail of credit at another time in order to help encourage a reduction in use of energy by rewarding efficiency. [8751/07]

John Perry (Sligo-Leitrim, Fine Gael)
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Question 397: To ask the Minister for Social and Family Affairs his plans to extend the free fuel allowance; and if he will make a statement on the matter. [8754/07]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 396 and 397 together.

The national fuel scheme assists householders on long-term social welfare or health service executive (HSE) 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 and are included in the recipient's weekly payment during this period. The allowance represents a contribution towards a person's normal heating expenses. It is not intended to meet those costs in full.

The fuel allowance is not a voucher system or fuel credit but is paid as part of a claimant's weekly welfare payment. While the fuel allowance amount is intended as a supplement to heating expenses, it is a matter for each claimant to decide how they wish to utilise this allowance.

The fuel allowance scheme has been improved and expanded over recent years. The range of improvements made to the scheme in recent years include an easing of the means test, extending the duration of payment from 26 to 29 weeks and an increase of €5 in the rate of payment in the 2006 Budget. In Budget 2007, I have provided for a number of further improvements in the fuel allowance scheme. These comprise an increase in the weekly rate of fuel allowance of €4 from €14 to €18 (€21.90 in designated smokeless areas) and an increase in the income threshold for eligibility to fuel allowance by €49 from €51 to €100 above the state pension (contributory) rate.

Some 274,000 people benefited from the fuel allowance in 2006 at an estimated annual cost of €125.1m. As a consequence of the increase in rate and the increase in the income threshold for eligibility as announced in the recent Budget, annual expenditure on the scheme in 2007 will increase by an estimated €36.4 million. The total annual cost in 2007 is estimated at €161.5m.

Any further extensions or improvements to the fuel allowance scheme would have cost implications and would have to be considered in a Budget context and in the light of the resources available for improvements in social welfare generally.