The expansion of the Fuel Allowance means that more people will be entitled to a free home retrofit, funded by the SEAI.
In Budget 2027, Minister Jack Chambers announced that the eligibility threshold for the Fuel Allowance will be significantly widened.
Previously, single pensioners with an income of less than €534 a week were entitled to the benefit. However, going forward, anyone on less than €641 per week can claim it.
Anyone in receipt of the Fuel Allowance is also eligible for the Warmer Home Scheme, which means the SEAI will cover the cost of attic insulation, wall insulation, draught-proofing, as well as solar panels and batteries.
On The Claire Byrne Show, Karol Kissane of the Irish Farm Account Cooperative said he supports people on welfare getting free retrofits in order to tackle fuel poverty.
“In the budget last week, there was an increase given on how much you can earn and receive Fuel Allowance,” he explained.
“Under what came in on the budget, a couple who are, say, retired could be earning up to €66,000 a year.
“They will qualify for the Fuel Allowance and then that will allow them to also qualify for the Warmer Home Scheme, which means that a full retrofit, heat pump, solar panels, wall installation, et cetera, will all be covered.”
A heat pump installed in the garden of a home in Ireland. Picture by: Alamy.com. However, Mr Kissane added that there is currently an “anomaly” where the very poor get free retrofits, while many low earners miss out completely.
“If you contrast that to somebody maybe just down the road, maybe they're in their mid-50s, they're on a lower paid, maybe minimum wage job, and the other person, the couple is working part time, might be earning €45,000,” he said.
“They're not getting any social protection payment, they actually won't qualify for the warmer home scheme and they will need to find the actual money to finance and pay for any upgrades to their homes themselves.”
Loft insulation. Picture by: Alamy.com. The State has set itself a target of retrofitting at least 500,000 homes to a B2 BER energy rating, in an effort to cut fuel poverty and carbon emissions.
Taoiseach Micheál Martin has stressed that the Government is “driving ahead with retrofit, with solar and the results are good”.
However, Mr Kissane said the middle class are losing out on the programme, with SEAI grants mostly benefiting those who live in “more affluent areas” of the country.
“The grants have increased in the recent budget,” he added.
“But it's still 45% for the solar panels, you have to find [funds for the remaining] 55% [of the cost of installation].
“If we look at SEAI data, they're saying that the average in 2024, 2025 to upgrade a home after grants is still about €30,000.
“So, if you're in a lower income household, €30,000 is a huge amount of money that needs to be found.”
Main image: A man installing a rooftop solar panel array. Picture by: Radharc Images / Alamy
