Dáil Éireann Debate, Tuesday - 21 March 2023
843. Deputy Seán Canney asked the Minister for Social Protection her views on whether counting gross income instead of net income in fuel allowance means assessment is fair, given that net income is a fairer representation of the actual weekly income of a person; and if she will make a statement on the matter. [13700/23]
View answerThe Fuel Allowance is a payment of €33 per week for 28 weeks (a total of €924 each year) from late September to April, at an estimated cost of €412 million in 2023. The purpose of this payment is to assist these households with their energy costs. Only one allowance is paid per household.
Fuel Allowance operates as part of an overall system of social protection supports which provides assistance payments based on a system of means testing. The means test ensures that the recipient has a verifiable income need and that resources are targeted to those who need them most.
By its nature, the means test takes account of the income a person or couple has in terms of cash, property - other than the family home - and capital. It does not take account of a person’s expenditure commitments or income tax circumstances.
If net rather than gross income was assessed for Fuel Allowance, it would mean that changes in tax rates or tax reliefs could change the claimant’s entitlement. In addition, to deduct outgoings such as mortgage or rent payments would significantly increase the complexity of the means assessment. It would also have significant budgetary implications and would give rise to inconsistencies in how means tests are applied across schemes.
Finally, the Department of Social Protection provides Additional Needs Payments as part of the Supplementary Welfare Allowance scheme for people who have an urgent need, which they cannot meet from their own resources. These payments are available through our Community Welfare Officers.
I hope this clarifies the matter for the Deputy.
