Dáil Éireann Debate, Thursday - 18 June 2026
5. Deputy Paul McAuliffe asked the Minister for Social Protection if he plans to change the fuel allowance thresholds for those over the age of 66 that are a single income household; and if he will make a statement on the matter. [46491/26]
View answerDeputy McAuliffe has the next four questions in a row. We are on Question No. 5.
Gabhaim buíochas leis an gCathaoirleach. Could the Minister address the issue of the fuel allowance, particularly the income thresholds for those over the age of 66 in single-income households?
I thank Deputy McAuliffe for his question and his ongoing work on this. As a result of that work, there have been significant improvements in the fuel allowance scheme, particularly in relation to the income thresholds for those who are 66 and over.
In January 2023, in order to allow more pensioner households qualify for the fuel allowance, a new fuel allowance payment was introduced for those aged 70 and over. People over 70 no longer needed to be in receipt of a qualifying social welfare payment to be eligible for fuel allowance. A single person with means of up to €500 per week or a couple with €1,000 per week became eligible. The amount of savings and investments that are disregarded was also increased for those aged 70 or over from €20,000 to €50,000.
From January 2025, this measure was extended to applicants aged 66 and over, with an increase to the weekly means that could be disregarded to €534 for a single person and €1,068 for a couple.
Recent expansions to the scheme have resulted in many more households qualifying for the payment and have resulted in the budget for the scheme increasing to an estimated €557.4 million in 2026 compared to an expenditure of €290.45 million in 2020. Since 2020, when the Deputy was elected to the Dáil, an additional 100,000 households have become eligible for the fuel allowance. I am aware there may be exceptional circumstances where a person does not qualify for the fuel allowance but may need support. It is for this reason that we can make additional needs payments, through the local community welfare service, to meet essential expenses.
The programme for Government includes a commitment to examine key benefits such as the fuel allowance, the household benefits package and the living alone allowance increase to support vulnerable groups. This will be ongoing activity as part of our annual budget planning process. I intend to continue to make improvements to the key benefits, such as the fuel allowance. I am very aware of their necessity and the support they give to older and vulnerable cohorts.
I saw a statistic that 25% of all homes now in the State are in receipt of the fuel allowance. It is certainly a very significant figure. It is coming close to nearly 500,000 homes. Any of us as Deputies can see when you walk around and knock on doors, there are homes that have been able to avail of the better energy warmer home scheme because of their eligibility for fuel allowance. My worry is about the cliff-edge for people. There might be two people over-66 living in a home and for that household, the threshold is €52,000 of annual income. Next door, if there was a person living on their own who could often be a widow or widower, their income threshold is only €26,000 but it costs the same money to heat both homes. The 50% reduction in the income threshold for a single person is very significant. Perhaps it should be something closer to two thirds of it. Particularly for those in the over-66 category, there are many people who find themselves in that situation because of bereavement and it is worth examining.
I thank the Deputy for that example. Those are the anomalies I am looking at in the context of my previous discussion with Deputy Hayes. We are also looking at the living alone allowance. A person living on their own does not necessarily have half the costs. It is a rather arbitrary figure. In particular, it is especially challenging for somebody who goes through the trauma of losing a spouse or partner and is immediately faced with that cliff-edge. That is definitely something we will look at and particularly for the older cohort, who have higher bills for energy and food and less chance to make up that in terms of day-to-day earnings. In the context of looking at the living alone allowance increase and the fuel allowance payment for budget 2027, they are areas we will be considering. I look forward to engagement across the House ahead of budget 2027 in October.
It is a new scheme that is popular and people want to avail of it. If you are sitting in someone's home and as you go through the form, you say to them you are only eligible for one income threshold of €26,000. The person almost feels like they are being punished for having lost their partner. You can see it etched in their face. I ask the Minister to examine it. A 50% reduction is too significant and particularly for that older cohort. With his colleague, Deputy Darragh O'Brien, the Minister needs to examine how this scheme interacts with the better energy warmer homes scheme. It is an amazing scheme and you can get nearly €50,000 of works done to your home at no cost to the homeowner. Giving a gateway to that scheme, without necessarily significantly changing the fuel allowance scheme, could be one way of addressing the issue I am raising. While often people are seeking the payment of nearly €1,000 per year, they really want to make the improvements to their home to reduce their bills through the better energy warmer home scheme.
I will work with the Minister, Deputy O'Brien, on that. The living alone allowance is also available for people in that situation and it is €1,144 a year. The weekly rate for the living alone allowance is higher than the 28 weeks of the fuel allowance payment. I will say it to everybody about the household benefits package. There are many people who qualify for the households benefits package who are not in receipt of it. We all need to work with those who come into our offices to make sure they are in receipt of everything they are entitled to receive. That is one package in particular that I have noticed the numbers are down on. I will be doing some work on that.
The proposals and suggestions Deputy McAuliffe has made in the context of household composition and how we assess that are very worthy and could potentially make a difference. They will have to be looked at in the context of budgetary decisions and negotiations. We will be doing that.
