Danny Healy-Rae Challenges Fuel Allowance Rules for Claimants
Deputy Danny Healy-Rae challenged the minister over fuel allowance eligibility rules, arguing that people on certain benefit payments are unfairly excluded from fuel loans and other supports. He urged changes to rules that bar short-term benefit recipients, household members of claimants and people with under-15-month jobseeker records from qualifying, and asked for the issue to be addressed in upcoming budget negotiations.
What the deputy asked
The deputy pressed the minister to review fuel allowance eligibility criteria and to load qualifying status onto a range of benefit payments - including jobseekers, illness benefit and carer’s benefit - so recipients would qualify. He highlighted a particular concern that claimants with less than 15 months on jobseekers allowance are discouraged from taking seasonal or part-time work because they then lose their fuel allowance.
Eligibility rules and exclusions
The deputy set out how fuel allowance and fuel loan rules operate for claimants - only one fuel allowance is paid per household and qualifying payments are those considered long-term, with an applicant also subject to a means test. He noted that people receiving contributory payments such as jobseekers benefit, illness benefit, enhanced illness benefit, occupational injuries benefit, maternity benefit or disablement benefit do not qualify for fuel loans. He also pointed out that someone who shares a home with a person receiving illness benefit may be excluded from fuel loans, even if household income is low, and that recipients on those benefits do not qualify for the bonus week at Christmas.
Numbers and current supports cited
The deputy and the minister referenced the scale and value of existing supports: the fuel allowance is €28 per week for 28 weeks (€784 annually), paid to about 370,000 low-income households at an estimated cost of €300 million in 2021. The household benefits package pays approximately €35 per month to about 470,000 recipients (cost €195 million in 2021). The living alone allowance is paid at €19 per week, and over 221,000 recipients were cited as benefiting in 2021 at a cost of over €219 million.
Minister's defence and longer-term approach
The minister replied that the policy targets people on long-term payments who are more vulnerable to poverty and energy poverty, and that short-term payments are treated differently for that reason. The minister said decisions to extend eligibility to short-term claimants would be considered in the context of overall budgetary negotiations and noted the government will consider supports on Budget Day. The minister also emphasised energy-efficiency measures as a long-term solution, citing a retrofit budget in excess of €280 million and schemes such as the Warmer Home Scheme to improve household energy efficiency.
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Minister, I ask you in relation to the fuel allowance eligibility criteria that you reviewed and to load those on benefit payments such as job seekers, illness benefit, carer's benefit to qualify and to review the requirement of 15 months or more on job seekers allowance than others to qualify for the fuel allowance which is discouraging people from taking up seasonal work as they would then lose their fuel allowance in the winter. The fuel allowance is a payment of €28 per week, as you know for 28 weeks a total of €784 per year from October to April and we pay it out to 370,000 low-income households at an estimated cost of €300 million in 2021. The purpose of this payment is to assess these households with their energy costs, the allowance represents a contribution towards the energy costs of a household. It is not intended to meet those costs in full, only one allowance is paid per household. Qualifying payments for fuel allowance are those payments that are considered long-term payments and an applicant must also satisfy a means test. People on long-term payments are unlikely to have additional resources of their own and are more vulnerable to poverty, including energy poverty. It is for this reason that the Department allocates additional payments, supports and resources to help this cohort of claimants. Any decision to extend the eligibility criteria for fuel allowance to include people in receipt of short-term benefit schemes or people in receipt of short-term job seekers allowance would have to be considered in the context of overall budgetary negotiations. This year, funds raised through the carbon tax will again support targeted social welfare and other initiatives to alleviate fuel poverty and ensure a just transition. In this regard, in the forthcoming budget, the Government will consider how it can support people on low incomes and those on social welfare payments. The outcome of these considerations will be announced on Budget Day. Under the supplementary welfare allowance scheme, exceptional needs payments may be made to help meet an essential once-off cost which customers are unable to meet out of their own resources. This may include exceptional heating costs. Decisions on such payments are made on a case-by-case basis. I hope this clarifies the matter for the Deputy. I hear what you say, Minister, but I am not satisfied because I believe that these people on benefit payments are being treated very unfairly. A person in receipt of illness benefit, irrespective of how long they are claiming it can be two years, sometimes more, do not qualify. You do not qualify for fuel loans if you are getting one of the following contributory payments. Job seekers benefit, illness benefit, enhanced illness benefit, occupational injuries benefit, maternity benefit, or disablement benefit. Importantly, a person who shares a home or lives a person claiming illness benefit does not qualify for fuel loans either, no matter how low their income is. You do not qualify for fuel loans if you live with someone who is getting one of the qualifying payments for fuel loans. For example, a pensioner living with a cancer patient on illness benefit does not qualify for fuel loans, even though the combined state pension and illness benefit payments are considerably below the fuel loan mean test threshold. I think it is important to say that we are doing a lot already, Deputy, to help people with their fuel costs. The fuel allowance payment is €28 per week. It costs €300 million in 2021 and 370,000 low income households were able to benefit from that. The household benefits package, which consists of a set of allowances which help the costs of running a household. It includes allowances towards covering electricity or gas costs. Approximately 470,000 recipients are paid €35 per month at a total cost of €195 million in 2021. The living alone allowance, which is targeted at recipients of certain social welfare payments who live alone and often have significantly higher costs, is paid at a rate of €19 per week. In addition to primary social welfare payments such as the state pension, over 221,000 recipients will benefit in 2021 at a cost of over €219 million. Anything that you have said there, Minister, does not address the issue that I have raised in relation to the people on benefits, on benefit payments. And the other one there that I did not get was a personal receipt of jobseeker loans for less than 15 months won't qualify. So that's stopping those people of taking up a part-time job in the summer and that's very unfair and I can't understand how the government can stand over that all these people on these benefits are being disallowed. And something that I didn't put into the question and I should have. These people on those benefits as well don't qualify for the bonus week at Christmas. This is totally and absolutely wrong, Minister. And that's what I'm asking you. As you negotiate the upcoming government, I beg you to address the discriminatory rules that bar patients on benefit payments from getting fuel loans. That's what I'm asking you. Thank you, Deputy. Thank you, Deputy. Thank you. Just to say the principle behind this, Deputy, is that people on long-term payments are unlikely to have additional resources of their own and are more vulnerable to poverty, including energy poverty. And that's why we target people at longer-term payments. The payments that you mentioned are all short-term payments. So that's why we take the view that we try to help those that are more vulnerable to poverty. But the best long-term approach is to make sure homes are warmer and to invest in energy efficiency. And the government is committed to supporting households with their energy costs through energy efficiency measures with a total retrofit budget in excess of €280 million. Programs like the Warmer Home Scheme are important to help those on low income improve their energy efficiency. And the updated National Development Plan provides for an expanded investment well in excess of €1 billion in retrofit between now and 2025. Thank you. Thank you. Moving. Thank you. I'm moving on to the final. I'm moving on to the final priority. A David B. I'm moving on to the final priority. I'm going to tell you everyone. I'm going to Savannah O'Connor wins my perfect weather. I'm moving on to the final priority. I'm moving on to the final lot of the Linda later. I'm moving on to the final prioritize. I always go on to the final meeting tomorrow at 10.
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