Written answers

Tuesday, 22 May 2018

Department of Employment Affairs and Social Protection

Social Welfare Code

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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566. To ask the Minister for Employment Affairs and Social Protection if her Department has conducted an analysis of the impact increasing primary social welfare payments has on income thresholds for entitlement to secondary benefits and payments; and if she will make a statement on the matter. [22222/18]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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567. To ask the Minister for Employment Affairs and Social Protection the number of persons who lost an entitlement to a secondary social welfare benefit or payment in 2018 as a result of income thresholds for secondary benefits not being adjusted to reflect the increase in a primary social welfare payment; and if she will make a statement on the matter. [22223/18]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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568. To ask the Minister for Employment Affairs and Social Protection the reason her Department has not adjusted income thresholds for secondary benefits and payments to reflect increases in the rates of primary social welfare payments; her plans to adjust income thresholds for secondary benefits and payments in line with further increases in primary social welfare payments; and if she will make a statement on the matter. [22224/18]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I propose to take Questions Nos. 566 to 568, inclusive, together.

I believe the secondary benefits the Deputy is referring to are the household benefits package (HHB) and the fuel allowance payment.

The household benefits package comprises the electricity or gas allowances and the free television licence. The package is generally available to people living in the State, aged 66 years or over who are in receipt of a social welfare type payment or who satisfy a means test. The package is also available to carers and people with disabilities under the age of 66 who are in receipt of certain social welfare type payments. The package is currently paid to over 436,000 customers and will cost an estimated €237 million in 2018. An applicant would only have to satisfy a means test for HHB if they are aged between 66 and 70 years and notreceiving a social welfare type pension. Therefore an increase in the rate of primary social welfare payments would have no detrimental effect on this cohort of people.

The fuel allowance is a payment of €22.50 per week from October to April, to over 338,000 low income households, at an estimated cost of €227 million in 2018. The purpose of this payment is to assist these households with their energy costs. The allowance represents a contribution towards the energy costs of a household. It is not intended to meet those costs in full. Only one allowance is paid per household. A person applying for a fuel allowance must satisfy a means test. All qualifying non-contributory recipients are accepted as satisfying the means-test. Where a person on a contributory payment resides with household members in receipt of non-contributory payments, income from the non-contributory payments is disregarded for the purpose of calculating entitlement to Fuel Allowance.

The current income limit for fuel allowance is set at €100.00 a week above the appropriate maximum State Pension (Contributory) rate. The following assessable income limits therefore apply from 30 March 2018 when the rate of State Pension (Contributory) increased:

(i) €343.30 for a single person under 80 years (€100 plus €243.30), up from €338.30

(ii) €505.40 for a couple, where the qualified spouse/civil partner/cohabitant is under 66 years (€100 plus €243.30 plus €162.10), up from €497.10

(iii) €561.30 for a couple, where the qualified spouse/civil partner/cohabitant is 66 years or over (€100 plus €243.30 plus €218.00); up from €551.80

Therefore the income limits for HHB and fuel allowance automatically increase when the rates of State Pension (Contributory) increase. Accordingly it is not necessary for my Department to conduct an analysis of the impact increasing primary social welfare payments has on income thresholds for entitlement to HHB or fuel allowance payment.

Additionally, my Department would not have any figures on the number of people who lost entitlement to HHB or fuel allowance because of an increase in primary social welfare payments as the income threshold is automatically adjusted.

I hope this clarifies the matter for the Deputy.

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