Written answers

Tuesday, 28 March 2023

Department of Employment Affairs and Social Protection

Social Welfare Code

Photo of Joe FlahertyJoe Flaherty (Longford-Westmeath, Fianna Fail)
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125. To ask the Minister for Employment Affairs and Social Protection if she will look at further widening the thresholds for accessing the fuel allowance scheme in Budget 2023 given that the cost of heating homes remains very high; and if she will make a statement on the matter. [15136/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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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 €412 million in 2023. The purpose of this payment is to assist these households with their energy costs. Only one allowance is paid per household.

The Government is committed to protecting vulnerable households from the impact of energy costs through a combination of supports, energy efficiency awareness initiatives and investment in programmes to improve the energy efficiency of the housing stock.

In Budget 2023 the Government has already provided an unprecedented response that aims to ease the financial pressure on households throughout the State. This response included the largest ever expansion of the Fuel Allowance scheme. Consequently, from January of this year, a new Fuel Allowance means threshold was introduced for people aged 70 years and over. The new means threshold is €500 for a single person and €1,000 for a couple. Under the formula used to assess means for the Fuel Allowance for over 70s, the threshold for capital that is disregarded in the assessment was increased from €20,000 to €50,000. The weekly means threshold for those aged under 70 was increased by €80 to €200 above the appropriate rate of State Pension (Contributory). Similarly, the allowable means for Household Benefit Package (HHB) purposes for those aged between 66-69 not in receipt of a qualifying payment was also increased by €80 to €200 above the appropriate rate of State Pension (Contributory). Up to 81,000 new households will benefit from this major expansion of Fuel Allowance Scheme. Analysis by the ESRI indicates that the net impact of the combined measures is progressive and will fully insulate low-income households from the impact of energy price increases.

The Government will continue to monitor the cost-of-living situation closely and how it can support people on low incomes and those on social welfare payments who are at risk of fuel poverty. However, any further widening of the thresholds for accessing the fuel allowance scheme can only be considered while taking account of the overall policy and budgetary situation.

Finally, my Department provides Additional Needs Payments as part of the Supplementary Welfare Allowance scheme for people who have an urgent need, which they cannot meet from their own resources. These payments are available through our Community Welfare Officers.

I trust that this clarifies the matter for the Deputy.

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