Major changes to the Fuel Allowance were announced in Budget 2026 and will affect thousands of households across Ireland.
According to the Government, around 460,000 households will benefit from the changes.
A major shake up to the Fuel Allowance was confirmed as part of Budget 2026, with thousands of households across Ireland set to benefit from higher payments and expanded eligibility next year.
The Fuel Allowance – a key social welfare payment that helps households cover the cost of energy bills during the colder months – is currently worth €33 per week and is paid from September to April, either weekly or in two lump sums.
Under the new Budget measures, the payment will increase by €5 to €38 per week from January 2026, marking one of the biggest boosts to the scheme in recent years.
In another big change, the Working Family Payment will become a qualifying payment for the Fuel Allowance from March 2026, and payments for those eligible will be backdated to January 2026.
Meanwhile, from September 2026, people moving from Disability Allowance or Blind Pension into work will be allowed to keep their Fuel Allowance for five years.
According to the Government, around 460,000 households will benefit from the changes.
To qualify for the Fuel Allowance you must:
- Be aged over 66 or over
- Be aged under 66 and get a qualifying social welfare payment
- Live alone, or only with certain people listed below
- Satisfy a means test
- Live in Ireland
You cannot get Fuel Allowance if your heating costs are provided in full as part of your accommodation.
To get Fuel Allowance, you must live alone, or with:
- A spouse, civil partner or cohabitant who qualifies for an increase on your pension or social welfare payment, or is getting a qualifying payment in their own right
- Dependent children
- A person who gets Carer’s Benefit, and who is caring for you or for your spouse, partner or cohabitant, or for a qualified child dependant on a full-time basis
- A person getting short-term Jobseeker’s Allowance (less than 312 days) or basic Supplementary Welfare Allowance (less than 364 days)
- A person getting a qualifying payment (for example, long-term Jobseeker’s Allowance) and who would be eligible for a Fuel Allowance in their own right
- A person aged 66 or over
- A person renting a room from you, where this doesn’t affect your entitlement to Fuel Allowance
- A person you provide accommodation to in your own home, and for whom you get the Accommodation Recognition Payment
Only one Fuel Allowance payment is made per household. If more than one person qualifies, the household can choose who applies.
If someone in the household is getting a social insurance payment such as the State Pension (Contributory) or Invalidity Pension, they should apply first so a means test can be carried out. Another qualifying member can also apply but must include details of the person on the social insurance payment.
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