John Browne
Ceist:50 Mr. Browne (Wexford) asked the Minister for Social Welfare the plans, if any, he has to increase the free fuel allowance from its current rate; and if he will make a statement on the matter. [21536/96]
Written Answers. - Fuel Allowance.
The national fuel scheme assists householders who are on 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 per week was introduced in October 1990 to assist people living in the built-up areas of Dublin to help meet the additional costs arising from the ban on the sale of bituminous coal in these areas. This was later extended to Cork city and adjacent areas to coincide with the ban on the sale of bituminous coal which came into effect there on 13 February 1995.
Expenditure on the national fuel scheme has increased by almost 65 per cent in the last 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.
Increasing the level of the allowance would have significant cost implications. The estimated annual cost for every £1 increase in the fuel allowance would be an additional £7.12 million. A corresponding increase in the rate of the smokeless fuel allowance would cost an additional £2.34 million.
A review of the scheme has commenced to ensure 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.