Written answers
Tuesday, 29 July 2025
Department of Employment Affairs and Social Protection
Social Welfare Schemes
Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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1896. To ask the Minister for Employment Affairs and Social Protection to estimate the cost of expanding the fuel allowance to all people on a disability-related social protection payment; and of extending the heating season to 32 weeks. [44337/25]
Dara Calleary (Mayo, Fianna Fail)
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The main disability related payments provided by my Department are Disability Allowance, Invalidity Pension and the Blind Pension. The cost of expanding Fuel Allowance to all those in receipt of these disability related payments is as follows:
Rate of Fuel Allowance | Weeks Payable | Estimated additional Beneficiaries | Estimated Additional Cost |
---|---|---|---|
€33 | 28 | 130,000 | €120.12 million |
€33 | 32 | 130,000 | €137.28 million |
This costing is based on the estimated average number of recipients in 2025, and is subject to change in light of emerging trends and subsequent revision of the estimated number of recipients.
The provision of any additional supports such as increasing the weekly rate of Fuel Allowance would have cost implications and could 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.
Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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1897. To ask the Minister for Employment Affairs and Social Protection the estimated costs of linking the wage subsidy scheme to the national minimum wage; and the estimated costs of restoring the wage subsidy scheme to 70% of the national minimum wage. [44341/25]
Dara Calleary (Mayo, Fianna Fail)
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The Wage Subsidy Scheme is a key disability employment support. It aims to encourage employers to offer substantial and sustainable employment to people with disabilities through a subsidy.
As part of Budget 2022, my Department increased the base subsidy rate from €5.30 to €6.30 per hour. This gives a total annual subsidy available of €12,776 based on a 39-hour week. The maximum subsidy rate under Strand 2 is €9.45 per hour, giving a total subsidy of €19,164.60 per year. Expenditure for the scheme in 2024 was approximately €23 million.
The review of the Wage Subsidy Scheme found that nearly 85% of employers who had used the scheme approved of the current subsidy rate. However, a third of written submissions expressed concerns over the current rate and costs associated with the scheme. Hence, the recommendation to review the subsidy rate every three years was included.
The rate of subsidy paid under the scheme is not linked to the National Minimum Wage. However, the current higher subsidy rate of €9.45 equates to 70% of the current National Minimum Wage rate of €13.50 per hour. The cost of any changes to the rate would depend on a number of factors such as whether each rate would be changed or just one and the relatives between the different rates.
The Programme for Government commits to examining an increase in the payment rate under the scheme. That commitment will be advanced in the context of the Budget.
Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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1898. To ask the Minister for Employment Affairs and Social Protection the estimated cost of reconfiguring disability allowance payments such that only the receiving individual’s personal income is assessable, and not their household’s and where “welfare cliffs” in the payment are designed such that no recipient will receive less income in aggregate if they take up work or take a promotion. [44342/25]
Dara Calleary (Mayo, Fianna Fail)
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Disability Allowance is my Department's primary disability related social assistance scheme. Applying a means-test ensures that the recipient has an income need and that scarce resources are targeted to those with the greatest need.
The means test takes account of the income a person or couple has in terms of cash, capital and property, other than the family home. Disability Allowance has one of the highest capital disregards operated by the Department of Social Protection. A recipient can have up to €50,000 in savings and still receive the full rate of payment. This compares with €20,000 for most social welfare payments.
People in receipt of Disability Allowance and Blind Pension can work and earn up to €165 a week and keep their full rate of payment. For people who earn more than €165 a week, 50% of their earnings between €165 and €375 are not taken into account in the means test. Any earnings over €375 are assessed in full. A person can earn up to €517.60 a week and still keep their entitlement to the minimum rate of Disability Allowance and their secondary benefits. This stepped approach aims to ensure that people do not face a “welfare cliff” as they take up work or additional hours.
Reconfiguring the scheme as proposed in the Deputy's question would represent a fundamental change to the scheme. There are no cost estimates available for such a reform.
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