Dáil Éireann Debate, Thursday - 8 September 2022
1107. Deputy David Cullinane asked the Minister for Social Protection if she will advise on a matter raised in correspondence; if she will review particular circumstances on behalf of a person (details supplied); and if she will make a statement on the matter. [42815/22]
Amharc ar fhreagraTaxation of income is a matter for the Minister for Finance and the Revenue Commissioners.
They have advised my Department that the tax treatment of the widow’s pension (contributory and non-contributory) follows the general taxation rule for social welfare type payments and, thus, is chargeable to income tax, but exempt from the USC and PRSI.
Where a person is receiving taxable social welfare payments from my Department and has an additional source of income such as employment income, the tax on such social welfare payments is collected through the PAYE system by reducing the person’s annual tax credits and rate band by their annual social welfare income. The weekly/monthly employment income received by the person from their employer will be net of any tax due in respect of both their weekly/monthly social welfare income and employment income.
The weekly assessable income threshold for the Working Family Payment is €551 for a parent with one child. The threshold increases with each subsequent child with the threshold for a family with 3 children being €652 per week. Any changes to this threshold would need to be considered in budgetary context.
There is also a general principle of 'one person, one payment', which applies across the social welfare system. Given the contingency-based nature of this system, it can happen that a person may experience more than one contingency at the same time, but generally, as these payments are to help them meet his or her income needs, he or she can receive only one of those payments. This principle is common to social security systems across the world.
The issuing of a medical card is a matter for the Minister of Health.
I hope this clarifies the matter for the Deputy.
