Written answers

Tuesday, 25 April 2023

Department of Employment Affairs and Social Protection

Social Welfare Benefits

Photo of Gary GannonGary Gannon (Dublin Central, Social Democrats)
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375. To ask the Minister for Employment Affairs and Social Protection the total number of people in receipt of working family payment; the estimated cost of extending eligibility for the fuel allowance to recipients of the working family payment; and if she will make a statement on the matter. [19425/23]

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 Working Family Payment (WFP) is a weekly tax-free payment for employees with children which supports people in low paid employment. The WFP is designed to prevent in-work poverty for low paid workers with child dependents, and to offer a financial incentive to take up employment.

It is a targeted measure that is directly linked to household income and therefore directly supports low-income working families. As of 31stMarch 2023, there are approximately 47,000 families with 100,000 children who are currently in receipt of WFP.

The estimated cost of extending the Fuel Allowance payment to all those in receipt of the Working Family Payment (WFP) is €23.2 Million. This estimate is based on a weekly Fuel Allowance rate of €33 and a payment period of 28 weeks.

The Fuel Allowance is paid to social welfare recipients such as pensioners, people with disabilities, lone parents and the long-term unemployed in recognition of their long-term financial dependence on their social welfare payment for all or most of their income.

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 my Department allocates additional payments, supports and resources such as Fuel Allowance to this cohort of claimants.

The Working Family Payment is a weekly, tax-free payment available to employees with children. It gives extra financial support to families with children with rates depending on their incomes and family size. It is not considered a long-term Social Protection payment and recipients are in full time employment and are more likely to have additional resources.

While Working Family Payment is not a qualifying payment for Fuel Allowance, people may receive Fuel Allowance while on Working Family Payment if they are in receipt of One Parent Family Payment.

In response to an amendment tabled at Committee Stage of the Social Welfare Bill 2023, I have asked my Department officials to prepare a report on the potential extension of eligibility for the Fuel Allowance to those in receipt of the Working Family Payment. The work is ongoing and when finished, I will carefully consider its contents and any recommendations that it may contain.

I trust that this clarifies the matter for the Deputy.

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