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Changes to Fuel Allowance Rules for Carers

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Budget 2025 introduced significant updates to the Fuel Allowance scheme, providing welcome relief for carers and older individuals. These changes, effective from January 2025, aim to expand eligibility and offer greater financial support to those most in need during the cold winter months. Changes to Fuel Allowance Rules for Carers

Key Changes for 2025

1. Carer’s Allowance Now Qualifies for Fuel Allowance
For the first time, people receiving the Carer’s Allowance will be eligible for the Fuel Allowance. This change acknowledges the financial challenges faced by carers, who often juggle full-time caregiving responsibilities with limited income.

2. Increased Means Test Disregard for Older People
From January 2025, the means test disregard for Fuel Allowance will rise significantly for people aged 66 and over. The new limits will be €524 per week for a single person and €1,048 per week for a couple. This adjustment makes the scheme accessible to more older people who might previously have been excluded due to income thresholds.

How Fuel Allowance Works

The Fuel Allowance is paid to eligible households to help cover heating costs during the colder months. In 2024/2025, the allowance runs for 28 weeks, starting on September 23, 2024, and totals €924 for the season.

Recipients can choose to receive the payment in two ways:

  • Weekly Payments: €33 per week added to their main social welfare payment.
  • Lump Sum Payments: Two instalments—one issued in September and the other in January.

To switch payment methods, you must submit the “Change the Payment Frequency” form at least one month before the first instalment. However, the lump sum option is not available for recipients of payments under schemes like the Rural Social Scheme, Tús, Gateway, or Community Employment.

Why These Changes Matter

The inclusion of Carer’s Allowance as a qualifying payment is a major step forward, addressing long-standing advocacy efforts from carers’ groups. Carers often face increased household expenses, and this change will provide them with much-needed financial support.

Similarly, the higher means test disregard for older individuals ensures that more people aged 66 and over can access the allowance, helping them manage energy costs during the winter.

These updates reflect a broader effort to support vulnerable groups during a time of rising living costs, ensuring that essential supports like the Fuel Allowance are accessible to those who need them most. Changes to Fuel Allowance Rules for Carers

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