Kevin Humphreys (Dublin South East, Labour) | Oireachtas source

I thank Deputy Lawlor for his kind words. I am sure we will see him down in these low elevations as well at some stage.

The Deputy will be aware that the Finance (Local Property Tax) Bill 2012 allows for a person who is liable for the local property tax, and who is in receipt of certain social protection payments, to have local property tax deducted from their payments. The Revenue Commissioners have agreed with the Department of Social Protection a number of schemes from which the deduction at source facility for this tax can be made.

Deductions of local property tax, LPT, from social protection payments commenced in July 2013. With effect from 5 September 2014, there are 23,562 customers having deductions for local property tax from social protection schemes.

In order to maintain statutory minimum incomes and in order to ensure that a customer is left with enough resources to live on, the Finance (Local Property Tax) Act 2012 provides that deductions from social welfare payments in relation to the local property tax will not breach the statutory minimum income guarantee as set out in the Social Welfare Consolidation Act 2005. That rate is currently set at €186 per week. The maximum personal rate of pension for someone under age 66 on a widow's, widower's or surviving civil partner's (contributory) pension is currently €193.50, thus only €7.50 per week can legally be taken from this payment in order not to bring the recipient below the basic social assistance personal rate of €186 per week. For those aged 66 and above, with a maximum pension of €230.30 per week, the total amount that can be deducted is €44.30. This amount is calculated after any deduction is made for recovery of any existing court orders or social protection overpayments and is based on the primary personal rate only.

Secondary payments which cover specific benefits are not taken into account in determining whether a claimant's scheme payment is greater or less than €186 per week. This is provided for in section 92(2) of the Finance (Local Property Tax) Act 2012. Where a customer is not eligible for the deduction at source facility or where the deduction level allowable will not meet the customers LPT liability in full, he or she will be contacted by the Revenue Commissioners so that an alternative payment arrangement can be made from the payment options available.

The Minister for Social Protection appreciates the convenience for social welfare recipients of having the deduction facility in place but her overriding obligation is to have safeguards which ensure that a customer is not left without sufficient income. The Minister is reviewing the implications of allowing customers to have deductions made from their welfare payment on a voluntary basis which has the effect of bringing their payment below the basic rate in some clearly defined instances. This is a complex area with intertwined policy and legal implications and it requires careful consideration before any final decision is made in this regard.

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