Written answers

Tuesday, 7 November 2023

Department of Employment Affairs and Social Protection

Social Welfare Eligibility

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry, Independent)
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758. To ask the Minister for Employment Affairs and Social Protection if she will examine the qualifying conditions for the fuel allowance (details supplied); and if she will make a statement on the matter. [48301/23]

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 criteria for Fuel Allowance are framed in order to direct the limited resources available to my Department in as targeted a manner as possible. To qualify for the Fuel Allowance payment, a person must satisfy all the qualifying criteria. This ensures that the Fuel Allowance payment is targeted at those who are more vulnerable to fuel poverty, including those reliant on social protection payments for longer periods and who are unlikely to have additional resources of their own.

As Minister for Social Protection, I was pleased to introduce a new means test for Over 70s last year. The means threshold for those aged over 70 is €500 for a single person and €1,000 for a couple and is based on gross income. In addition, for people aged 70 or over, the amount of capital (savings and investments) that is disregarded in the means test for Fuel Allowance was increased from €20,000 to €50,000. Savings over €50,000 are assessed on a proportionate basis only.

The increased allowable means threshold for people who are married, cohabiting or in a civil partnership acknowledges that the overall cost of living for this cohort is higher than for a single person and the fact that the Department pays an Increase for a Qualified Adult on many of its primary payments is recognition of this.

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.

In Budget 2024, the Government did provide for increases to core Social Welfare payments, as well as a once off payment of €200 for those in receipt of the Living Alone Increase, along with the Christmas Bonus and January Cost of Living Bonus payments.

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 hope this clarifies the matter for the Deputy.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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759. To ask the Minister for Employment Affairs and Social Protection if she intends increasing the upper threshold of €310 per week for entitlement to a qualified adult payment for social insurance-based schemes in the forthcoming social welfare Bill; and if she will make a statement on the matter. [48305/23]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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762. To ask the Minister for Employment Affairs and Social Protection the number of pensioners in receipt of a non-contributory State pension; the number of these that are receiving a reduced rate; the estimated cost to her Department of exempting the first €200 of self-employed income from the means test similar to regime that applies to employed income; and if she will make a statement on the matter. [48308/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 759 and 762 together.

Means test rules in my Department are kept under regular review and I have introduced a number of significant changes in recent years including:

  • Providing for higher income disregards. These disregards ensure that, where people are in receipt of a social assistance payment and are working, their income from work to the level of the income disregard, is not assessed in the means test.
  • Expanding the list of agri-environmental schemes that qualify for a disregard, and as part of Budget 2023 I increased this disregard.
  • Introduced a Rent a Room disregard, for all Social Protection schemes, to enable recipients to support those arriving from Ukraine, and others, in a tight housing market. Earlier this year, I extended that provision for a further two years.
  • From January 2023, I introduced significant changes to eligibility rules for Fuel Allowance, including a new means threshold for people aged 70 years and over - €500 for a single person and €1,000 for a couple. These changes resulted in an additional 35,000 households joining the scheme so far.
  • Last year I significantly increased the income and capital disregards for Carer's Allowance. This enables more carers with modest incomes to become eligible for the scheme and allows carers and their families to earn more from employment while retaining their carer’s payment.
As part of Budget 2024, I further increased the Carer's Allowance disregard to €450 for a single person, and €900 for carers with a spouse/partner from June.

I have committed to a carrying out a broad review of means testing this year, which will include consideration of means test provisions including how income from self-employment for the State Pension (Non-contributory) and thresholds for for entitlement to a qualified adult payment for Social Insurance schemes.

This review is ongoing and I hope to complete it in Quarter 4 this year.

The number of pensioners in receipt of the State Pension (Non-contributory) is 99,452. The breakdown of these is 72,328 at the max rate and 27,124 at a reduced rate.

I trust that clarifies matters for the Deputy.

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