Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

1332.To ask the Minister for Employment Affairs and Social Protection if there are plans to further increase the income threshold for fuel allowance. [32484/24]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

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.

The criteria for fuel allowance are framed in order to direct the limited resources available to the Department in as targeted a manner as possible. The means test ensures that the Fuel Allowance is paid only to those most vulnerable to energy poverty including those reliant on social protection payments for longer periods and who are unlikely to have additional resources of their own.

In Budget 2023, there was a significant increase in the allowable means for Fuel Allowance purposes allowing many more households to qualify for the payment.

For those aged 70 years and over, the new means threshold was €500 for a single person and €1,000 for a couple. In addition, for people aged 70 or over, the amount of capital that is disregarded was increased from €20,000 to €50,000. Savings over €50,000 are assessed on a proportionate basis only.

For those aged under 70, the means threshold was increased by €80 to €200 above the appropriate rate of State Pension (Contributory).

In January 2024, the allowable means for those aged over 70 was increased to €512 for a single person and €1,024 for a couple. This was to ensure that no one lost their entitlement to the Fuel Allowance payment due to the increase in weekly rates of Social Welfare payments.

While consideration is always given to suggested improvements to the Department's schemes, any decision to Increasing the income threshold for Fuel Allowance further could only be considered while taking account of the overall budgetary context and the availability of financial resources.

I trust that this clarifies the matter for the Deputy.