Written answers

Tuesday, 26 April 2022

Department of Employment Affairs and Social Protection

Social Welfare Eligibility

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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1036. To ask the Minister for Employment Affairs and Social Protection the number of additional persons who would qualify for the fuel allowance if the weekly means threshold of €120 in the means test were increased by a further €20, or €50 or €100; the additional cost for each increase; the number of additional persons qualified for the fuel allowance following the €20 weekly means threshold increase in budget 2022; and if she will make a statement on the matter. [20235/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Fuel Allowance is a payment of €33.00 per week for 28 weeks (a total of €924 each year) from October to April, which is supporting up to an estimated 400,000 households in 2022, at an estimated cost of €366 million in 2022. 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.

Taking account of the fact that the Fuel Allowance is a household based payment and that qualification is not just based on the means test but on a number of other complex qualifying criteria such as household composition, it is not possible for my Department to provide an accurate projection of the potential cost of the measures outlined by the Deputy. My Department also does not maintain records across all schemes of the amount by which unsuccessful fuel applicants are over the income threshold. It is also worth noting that many people above the existing income threshold do not make an application.

In Budget 2022 and with immediate effect the Government increased the weekly means threshold for the Fuel Allowance scheme by €20 to €120 above the appropriate rate of Contributory State Pension representing a 20% increase and enabling more people to qualify for this support.

My Department also provides discretionary exceptional needs payments, where appropriate, to people who face difficulties in meeting fuel bills. These payments are not ring-fenced or budget limited as they would be if they were drawn from an earmarked fund, but rather are demand led.

The provision of any additional supports such as further increasing the allowable means for Fuel Allowance purposes would have cost implications and could only be considered while taking account of the overall budgetary context and the availability of financial resources.

I hope this clarifies the matter for the Deputy.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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1037. To ask the Minister for Employment Affairs and Social Protection the number of additional persons who would qualify for the fuel allowance if illness benefit were an eligible payment; the cost for the 2022–2023 fuel season; and if she will make a statement on the matter. [20236/22]

Photo of Cathal CroweCathal Crowe (Clare, Fianna Fail)
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1086. To ask the Minister for Employment Affairs and Social Protection if she will amend the qualifying criteria for fuel allowance payments in order that those in receipt of illness benefit also receive them in view of spiralling fuel costs; and if she will make a statement on the matter. [20934/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 1037 and 1086 together.

The Fuel Allowance is a payment of €33.00 per week for 28 weeks (a total of €924 each year) from October to April, at an estimated cost of €366 million in 2022. The purpose of this payment is to assist qualifying 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.

Taking account of the fact that the fuel allowance is a household based payment and that qualification is not just based on the means test but on a number of other complex qualifying criteria such as household composition, it is not possible for my Department to provide an accurate projection of the potential cost of the measure outlined by the Deputies or the additional number of persons who would qualify for the fuel allowance payment.

Qualifying payments for Fuel Allowance are those payments that are considered long term payments and an applicant must also satisfy a means test. People on long term payments are unlikely to have additional resources of their own and are more vulnerable to poverty, including energy poverty. It is for this reason that the Department allocates additional payments, supports and resources to help this cohort of claimants.

In the majority of cases, Illness Benefit is a short-term payment for those who are certified by their GP as needing to take time out from their employment due to illness, and accordingly is not a qualifying payment for Fuel Allowance.

People who are permanently incapable of work may be eligible for the non-means-tested Invalidity Pension, subject to satisfying the relevant social insurance and medical criteria. Those who are substantially restricted in undertaking suitable employment arising from a medical condition may be eligible for the means-tested Disability Allowance, subject to meeting the relevant medical criteria. Recipients of both of these payments, subject to satisfying all qualifying conditions, may be eligible for Fuel Allowance.

Any decision to allow those in receipt of a short-term payment such as Illness Benefit to receive the fuel allowance payment would represent a fundamental change to the nature of the scheme and would inevitably lead to pressure for other short-term schemes to be considered as qualifying payments for the Fuel Allowance. As such, it would have to be considered in the context of overall budgetary negotiations.

Under the Supplementary Welfare Allowance scheme, Exceptional Needs payments may be made to help meet an essential, once-off cost, which customers are unable to meet out of their own resources, and this may include exceptional heating costs. Decisions on such payments are made on a case-by-case basis.

I hope this clarifies the matter for the Deputies.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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1038. To ask the Minister for Employment Affairs and Social Protection the number of additional persons who would qualify for the household benefits package if the €100 weekly means threshold of the means test was increased by €20, €50 or €100; and if she will make a statement on the matter. [20237/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Household Benefits package (HHB) comprises the electricity or gas allowance, 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 some people under the age of 66, who are in receipt of certain welfare type payments. My Department will spend approximately €273 million this year on HHB.

The allowable means for HHB purposes is €120 above the relevant State Pension Contributory rate. Applicants aged 70 or over do not have to satisfy a means test or be in receipt of a qualifying payment.

It is not possible for my Department to provide an accurate projection of the potential cost of the measures outlined by the Deputy. My Department does not maintain records of the amount by which unsuccessful HHB applicants are over the income threshold. It is also worth noting that many people above the existing income threshold do not make an application.

Any decision to enhance the HHB package would have budgetary consequences and would have to be considered in the context of overall budget negotiations.

In Budget 2020, it was announced that for HHB applicants aged under 70 who are on a qualifying payment, another adult (except for the spouse, civil partner or cohabitant of applicant) living in the household will no longer be a disqualifying condition for the purposes of the HHB Package. Therefore, the status and income of the members of a household (except for the spouse, civil partner or cohabitant of applicant) does not prevent a HHB applicant from receiving the package.

My Department provides discretionary exceptional needs payments, where appropriate, to people who face difficulties in meeting fuel bills. These payments are not ring-fenced or budget limited as they would be if they were drawn from an earmarked fund, but rather are demand led.

I hope this clarifies the matter for the Deputy.

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