The national fuel scheme assists certain householders who are in receipt of long-term social welfare or health board payments and who are unable to provide for their own heating needs. A payment of £5 per week is paid to eligible households for 26 weeks, from mid-October to mid-April. An additional smokeless fuel allowance of £3 is paid to qualified householders in areas where there is a ban on the sale of bituminous coal.
The fuel allowance was increased from £4 to £5 per week in October 1985. Detailed information on the cost of the various fuel types at that time is not available.
In the five year period from 1989 to 1994 expenditure on the national fuel scheme increased by almost 54 per cent. This year a sum of £44.5 million has been set aside in the Estimates for the scheme. Increasing the fuel allowance from £5 to £7.50 per week would cost an estimated £18.3 million.
Last year I increased the income limit for the national fuel scheme from £5 to £10 per week. In this year's budget I announced a further £5 increase in the income limit which will take effect from October 1996. This means that a person may have a combined household income of £15 per week over the appropriate Irish maximum contributory pension rate or savings/investments of £8,000, and still qualify for the fuel allowance.