The national fuel scheme is intended to help households, who are dependent on long term social welfare or health board payments, with their heating costs. An applicant for a fuel allowance must also satisfy a means-test to establish that he is unable to provide for his own heating needs. One fuel allowence is payable per household.
An applicant and his household who have a combined income, from any source including from an occupational pension, of more than £5 a week above the relevant contributory social welfare income will not qualify for a fuel allowance.
The question of increasing the limit for additional income would have financial implications and could be considered only in a budgetary context. The estimated cost of the scheme for 1994 is £39.5 million.