Written answers

Wednesday, 26 September 2007

Department of Social and Family Affairs

Social Welfare Benefits

10:00 pm

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 115: To ask the Minister for Social and Family Affairs if he plans to amend the criteria for eligibility of the fuel allowance; and if he will make a statement on the matter. [20792/07]

Photo of Kathleen LynchKathleen Lynch (Cork North Central, Labour)
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Question 132: To ask the Minister for Social and Family Affairs the progress made with regard to the commitment made in the Programme for Government to extend the national fuel allowance scheme to cover eligible carers; and if he will make a statement on the matter. [20716/07]

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 153: To ask the Minister for Social and Family Affairs the number of people eligible for the fuel allowance; and if he will make a statement on the matter. [20791/07]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 115, 132 and 153 together.

The national fuel allowance 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. The allowance represents a contribution towards a person's normal heating expenses. It is not intended to meet those costs in full.

The main conditions that apply to the fuel allowance scheme are that a person must be in receipt of a qualifying payment, satisfy a means test and must either be living alone or only with a qualifying dependant. Carers allowance and carers benefit are not qualifying payments at present. The household composition, qualifying payment and means test rules are designed to ascertain the ability of applicant households to meet their normal heating requirements out of their own resources and to ensure that the maximum amount of support is targeted at those most in need of the fuel allowance support. Only one fuel allowance is paid per household.

People who already 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.

In the case of contributory pensions such as state pension (contributory), state pension (transition) and invalidity pensions, which are not means tested, a person may have a combined household income of up to €100 per week, or savings/investments of up to €58,000, over and above the maximum state pension (contributory) rate and still qualify for fuel allowance. The fuel allowance income limits increase each season in line with the increases in the state pension (contributory) rate.

In Budget 2007, the rate of fuel allowance was increased by €4 from €14 to €18 (€21.90 in designated smokeless areas). The income threshold for eligibility to fuel allowance was also increased by €49 to €100 above the state pension (contributory) rate.

Some 274,000 people benefited from the fuel allowance in 2006 at a cost of €125.1m. As a consequence of the increase in rate and the increase in the income threshold for eligibility as announced in Budget 2007, it is estimated that some 286,200 households will benefit under the scheme at an annual cost of €161.5m. The extension of the national fuel scheme to eligible carers, as set out in the Agreed Programme for Government, will be examined by my Department in the context of the overall package of commitments relating to carers. The additional costs arising from improvements to the scheme will be considered in future Budgetary proposals having regard to overall resources available for social welfare schemes generally.

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