Michael Healy-Rae (Kerry South, Independent)
Link to this: Individually | In context

Question 319: To ask the Minister for Social Protection if the winter free fuel allowance will be paid in a lump sum instead of a weekly basis. [15305/11]

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

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. The allowance represents a contribution towards a person's normal heating expenses. It is not intended to meet those costs in full. Fuel allowance is now payable for 32 weeks and for the 2010/2011 season will benefit over 375,000 people at an aggregate cost of €255 million. The payment rate is now €20 per week or €23.90 for recipients living in designated smokeless areas. In addition, electricity and gas allowances under the household benefits package, are payable throughout the year to over 390,000 pensioners, people with disabilities, and carer households towards their heating, light and cooking costs at an estimated overall scheme cost of €382 m in 2011.

There would be a number of difficulties in paying the fuel allowance as a lump sum for some recipients while others receive it as part of their weekly payment. If the payment were given in advance as a lump sum, there could be significant over-payments if a recipient's circumstances were to change during the payment season. If it were paid in arrears, it obviously would create further budgeting difficulties. Many oil companies provide facilities for making payment by monthly instalment over a period of time which allows people to plan and budget for fuel expenses. I am satisfied that this arrangement is sufficient to meet the needs of our customers.