Heather 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 €382 million in 2024. The purpose of this payment is to assist these households with their energy costs. Only one allowance is paid per household.

Fuel Allowance operates as part of an overall system of social protection supports which provides assistance payments based on a system of means testing. The means test ensures that the recipient has a verifiable income need and that resources are targeted to those who need them most. By its nature, the means test takes account of the income a person or couple has in terms of cash, property - other than the family home - and capital.

The treatment of Approved Retirement Funds for Fuel Allowance purposes is aligned with the treatment of Approved Retirement Funds for other Departmental means tested schemes. Approved Retirement Funds are similar to funds in a bank account in terms of accessibility. Therefore, the current value of the Approved Retirement Funds is treated as capital for means assessment purposes.

The assessment of capital reflects an expectation that people with reasonable amounts of capital and property are in a position to use that capital, or to realise the value of the property, to support themselves without having to rely solely on a means-tested welfare payment. While savings are assessed in the means test, most social protection schemes have a general capital disregard, meaning that the full amount of the capital is not assessed.

The standard formula for assessing the value of capital for those aged over 70 for Fuel Allowance purposes is as follows: the first €50,000 is fully disregarded; the next €10,000 is assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand.

The capital assessment formula is not designed to reflect interest or annuity rates available to investors and no account is taken of drawdowns from the fund in the means assessment.

While consideration is always given to any suggested improvements to Department schemes, any decision to amend the Fuel Allowance means test in relation to the treatment of Approved Retirement Funds would have budgetary and scheme consequences and can only be considered while taking account of the overall budgetary context and the availability of financial resources.

I hope this clarifies the matter for the Deputy.

Sorca Clarke (Longford-Westmeath, Sinn Fein)
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437. To ask the Minister for Employment Affairs and Social Protection the estimated cost if the fuel allowance was increased by a further two weeks. [6214/24]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The estimated full year cost of extending the Fuel Allowance by two weeks is €27.3 million.

This cost is based on the estimated number of recipients in 2024 and the current weekly rate of €33 and is subject to change in the context of emerging trends and associated revision of these estimates.

Sorca Clarke (Longford-Westmeath, Sinn Fein)
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438. To ask the Minister for Employment Affairs and Social Protection the estimated cost of increasing the maximum rate of disability allowance and State pension contribution by €14 per week from 1 September 2024. [6215/24]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The estimated cost in 2024of increasing Disability Allowance and the State Pension (Contributory) by €14 per week, from September 1st 2024, is €42.9 million and €134.3 million respectively.

The estimatedfull yearcost of increasing Disability Allowance and the State Pension (Contributory) by €14 per week, is €123.6 million and €388.1 million respectively. It should be noted that recipient number trends on State Pension (Contributory) are increasing based on demographic changes, so this estimated cost would likely rise further in future years.

These costs include a proportionate increase for Qualified Adults.

It should be noted that these costings are subject to change in the context of emerging trends and associated revision of the estimated numbers of recipients.