The aim of the national fuel scheme is to assist householders who are on long-term social welfare or health board payments and who are unable to provide for their own heating needs.
In 1988 the national fuel scheme was amalgamated with the urban fuel scheme to form a single fuel scheme. In recognition of the fact that it can be unpredictably cold in autumn and spring, The scheme is not confined to the winter months but runs for six months of the year, from mid-October to mid-April. The 1996-97 scheme will run from Monday, 14 October 1996 to Friday, 11 April 1997.
An additional smokeless fuel allowance of £3 per week was introduced in October 1990 to assist people living in the built-up areas of Dublin and Cork to help meet the additional costs arising from the ban on the sale of bituminous coal in these areas.
Expenditure on the national fuel scheme has increased by almost 65 per cent in the past five years, from £26 million in 1989 to £42.8 million in 1995. This year a sum of £44 million has been set aside in the Estimates for the scheme. This includes an amount for the increase in the income limits from £10 to £15 which I announced in this year's budget.
Any increase in the rate of the fuel allowance would have to be considered in light of the modest increase in domestic fuel prices since the current rate of the fuel allowance was fixed. In addition, increasing the level of the allowance would have financial implications. The estimated annual cost for doubling the allowance would be an additional £35.6 million approximately. A review of the scheme has commenced to ensure that it is operating effectively and equitably. Independent consultants have been engaged to carry out the review and the adequacy of current rates of payment will be examined in this context. The consultants are due to report to my Department in December.
