Duncan Smith (Dublin Fingal, Labour)
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316. To ask the Minister for Employment Affairs and Social Protection the number of fuel allowance applications that were refused in each of the past three years nationwide in cases in which the person living in the home of the applicant was on a non-qualifying social protection payment; and if she will make a statement on the matter. [22077/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The Fuel Allowance scheme is a means tested payment to assist pensioners and other long-term social welfare dependent householders with their winter heating costs. The payment is a contribution towards heating costs, it is not intended to meet these costs in full. The payment is made over the winter season at the weekly rate of €33.00 or, if preferred, by way of two lump sum payments. Only one Fuel Allowance is payable per household. Those who qualify for the payment do not need to reapply annually.

As at the end of December 2021, there were almost 375,000 Fuel Allowance recipients. Common disallowance reasons include where the means of the customer or household exceeds the permissible threshold; the applicant resides with a non-qualified person (for example, someone in employment); or the applicant resides with another person who is already in receipt of fuel allowance. Where an application is disallowed, it is open to the person to re-apply if there is a change in their circumstances.

Precise information on the number of applications disallowed, including due to a person living in the home of the applicant who was on a non-qualifying social welfare payment, is not readily available,

The Government is acutely aware of the increase in consumer prices in recent months, especially the increase in fuel and other energy prices. To help mitigate the effects of these rising costs, the Government announced additional expenditure measures of €505 million. As part of these measures, I announced an additional lump sum payment of €125 to households in receipt of the fuel allowance payment. This additional lump sum was paid in March 2022 at an estimated cost of €49 million.

The National Energy Security Framework includes provision for a further additional lump sum payment of €100 to be paid to all households in receipt of fuel allowance in the last week of the (2021/22) fuel allowance season – a payment equivalent to over 3 weeks additional fuel allowance. It is planned to make this additional €100 fuel allowance payment in mid-May.

Under the Supplementary Welfare Allowance scheme, discretionary payments can be made to help people with the cost of heating their homes. A Heating Supplement may be paid to assist people with exceptional heating costs due to ill health or infirmity who cannot meet those costs. My Department also provides discretionary Exceptional Needs Payments to people who face difficulties in meeting fuel bills

I hope this clarifies the matter for the Deputy.

Robert Troy (Longford-Westmeath, Fianna Fail)
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317. To ask the Minister for Employment Affairs and Social Protection the reason that 520 credits are required to qualify for the home caring periods scheme (details supplied). [22088/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The State Pension (Contributory) is a PRSI-based pension, financed by contributions made by current workers and their employers, and paid to pensioners, at a rate based upon their PRSI record when working. A person is required to have a minimum of 520 paid reckonable PRSI contributions in order to qualify for the State Pension (Contributory). As the actuarial value of the State Pension is currently estimated at approximately €380,000, it is reasonable to require people claiming a contributory pension to have made at least 10 years of paid contributions over the term of their working life.

The State pension system provides significant recognition to those whose work history includes an extended period of time outside the paid workplace, often to raise families or in a full-time caring role.

This is provided through the award of credits and/or the application of the Homemaker’s Scheme (under the Yearly Average method for payment calculation) and/or the application of HomeCaring Periods (under the Aggregated Contribution Method (also known as the interim Total Contributions Approach).

Details of these are –

- Credits – PRSI Credits are awarded to recipients of Carer’s Allowance (and Carer’s Benefit) where they have an underlying entitlement to credits. Credits are also awarded to workers who take unpaid Carer’s Leave from work.

- The Homemaker’s Scheme - The scheme, which was introduced with effect from 1994, is designed to help homemakers and carers qualify for State Pension (Contributory). The Scheme, which allows periods caring for children or people with a caring need to be disregarded (from 1994), can have the effect of increasing the Yearly Average.

- HomeCaring Periods – This Scheme makes it easier for a home carer to qualify for a higher rate of State Pension (Contributory). HomeCaring Periods can only be used under the Aggregated Contribution Method (also known as the Interim Total Contributions Approach) of pension calculation. HomeCaring Periods may be awarded for each week not already covered by a paid or credited social insurance contribution (regardless of when they occurred) to a maximum of 20 years.

Since April 2019, all new State (Contributory) Pension applications are assessed under all possible rate calculation methods, including the Yearly Average and the interim Total Contributions Approach, with the most beneficial rate paid to the pensioner. The elements which make up each method are set out in legislation.

It should be noted that if a person does not satisfy the conditionality to qualify for State Pension (Contributory), s/he may qualify for the means-tested State Pension (Non-Contributory), the maximum rate of which is over 95% that of the maximum rate of the State Pension (Contributory). Alternatively, if his/her spouse is a State pensioner and has significant household means, his/her most beneficial payment may be an Increase for a Qualified Adult, based on his/her personal means, and amounting to up to 90% of a full contributory pension.

The Pensions Commission was established in November 2020 to examine sustainability and eligibility issues with the State Pension and the Social Insurance Fund, in fulfilment of a Programme for Government commitment.

The Commission has now concluded its work and has submitted its final report to me. The report has been published on the Government website. It is extremely detailed, running to several hundred pages, and covers a range of complex matters in relation to the Pensions system which require very careful consideration. In this regard, I intend bringing a recommended response and implementation plan to Government in the coming weeks.

I hope this clarifies the matter.