Kieran O'Donnell (Limerick City, Fine Gael)
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53. To ask the Minister for Employment Affairs and Social Protection if she will provide an update on the changes to the fuel allowance scheme as announced in Budget 2023; the additional number of people that will be able to avail of the allowance; and if she will make a statement on the matter. [50599/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 53 and 55 together.

The Fuel Allowance is a payment of €33 per week for 28 weeks (a total of €924 each year) from late September to April, 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. Only one allowance is paid per household.

As part of the overall welfare Budget 2023 package of €2.2 Billion, a number of considerable reforms were made to the Fuel Allowance scheme.

- From January 2023, a new means threshold will be introduced for people aged 70 years and over. The new means threshold will be €500 for a single person and €1,000 for a couple. It is estimated that up to 64,000 households could benefit from this measure at a cost of €53.5 million per year.

- From January 2023, the weekly means threshold for those aged under 70 will be increased by €80 to €200 above the appropriate rate of State Pension (Contributory). It is estimated that up to additional 10,600 additional households could benefit from this measure at a cost of €9.8 million.

- From January 2023, the Disablement Benefit payment will be disregarded when assessing means for Fuel Allowance purposes and a household will also no longer be debarred from receiving Fuel Allowance because a person in the household is in receipt of Disablement Benefit. It is estimated that an additional 1,200 households may benefit from this measure.

- From January 2023, the Half-Rate Carers Allowance payment will be disregarded when assessing means for Fuel Allowance purposes. It is estimated that over 5,400 additional households may benefit from this measure.

It is estimated these measures combined will bring an additional 81,000 households into the Fuel Allowance Scheme from January. My Department is already working on developing the IT systems and operational requirements to give effect to these changes.

I can confirm that there will be an application process involved. This most likely will involve the completion of a Fuel Allowance application form. Further details in relation to the application process will be advertised once the operational requirements for the new measure have been implemented.

In addition to these measures, as part of the Government's Budget 2023 cost of living measures, a €400 additional Lump Sum payment will be made to all households in receipt of the Fuel Allowance Payment in November 2022. This will be paid automatically to qualifying households.

I hope this clarifies the matter for the Deputies.