John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

I am taking this Adjournment debate on behalf of the Minister for Social Protection, Deputy Burton, who apologises to the Senator for being unable to take it herself as she is at a committee meeting dealing with the Estimates. The Senator will be aware that the local property tax legislation 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 his or her payments.

The Revenue Commissioners have agreed with the Department of Social Protection on a facility for the deduction at source of this tax from a large number of schemes. This includes the widow's, widower's and surviving civil partner's contributory pension. Deduction of the local property tax, LPT, from Department of Social Protection payments commenced in July 2013. With effect from 17 January 2014, 19,770 customers are having deductions for local property tax from their payments under social protection schemes. I can advise the Senator that 4,283 of those are on a widow's, widower's or surviving civil partner's contributory pension. To maintain statutory minimum income and to ensure 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 respect of 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. That appears to be the issue.

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 a 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.

There were 16 additional requests for deductions from this particular scheme which were not implemented as to do so would have the customer's welfare payment below the basic social assistance rate. In these cases the customer would have been advised by the Revenue Commissioners to choose another method of payment. I would like to assure the Senator that the Revenue Commissioners have advised that no penalties will be applied to those who signed up for the deduction at source facility from their social welfare payments and where the deduction was not accepted. However, a penalty may apply if an alternative payment arrangement is not made by the customer. 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 a customer is not left without sufficient income. The Minister is reviewing the implications of allowing customers to have deductions made on a voluntary basis from their welfare payment which has the effect of bringing their payment below the basic rate in some clearly defined instances.

I acknowledge the presence in the Gallery of the delegation from the cross-Border body in Northern Ireland. I welcome them to the Chamber.

This is a complex area, however, with intertwined policy and legal implications, and it requires careful consideration before any final decision is made in this regard.