Dáil Éireann Debate, Thursday - 26 March 2026
334. Deputy Louise O'Reilly asked the Minister for Social Protection if he will provide a copy of the most recent SWITCH model runs used to cost fuel allowance threshold adjustments; and to provide details of the assumptions used regarding recipient elasticity and income distribution. [23368/26]
View answerThe criteria for Fuel Allowance are framed in order to direct the limited resources available to the Department in as targeted a manner as possible. To qualify for the Fuel Allowance payment, a person must satisfy all relevant qualifying criteria, including a means test. 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.
My Department has not run any SWITCH models to cost Fuel Allowance threshold adjustments and the means test does not use any assumptions regarding recipient elasticity and income distribution.
The amount of income that a household may have and still qualify for Fuel Allowance can vary depending on the qualifying payments in the household and if these qualifying payments are means tested payments or contributory non-means tested payments. For example, qualifying means tested non-contributory recipients are generally accepted as satisfying the means test. The allowable earnings/income a household may have and still qualify for Fuel Allowance is determined by the rules of the qualifying payment.
The Programme for Government includes a commitment to examine key ancillary benefits such as the Fuel Allowance, Household Benefits Package and Living Alone Increase to support vulnerable groups. This is an ongoing activity as part of the Department's budget planning each year and I will continue, as part of the budget planning process, to consider if improvements can be made to ensure that these benefits continue to target vulnerable groups.
Any further changes to the criteria for accessing the fuel allowance scheme would require additional funding for the scheme and therefore any decision to increase the Fuel Allowance thresholds would have to form part of overall budgetary negotiations.
I hope this clarifies the matter for the Deputy.
