184. Deputy Mary Lou McDonald asked the Minister for Social Protection the reason the fuel allowance is means-tested according to net income rather than gross income; if he will explain the rationale behind this decision; and if he will make a statement on the matter. [31275/26]

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 is based on gross income and not net income. 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.

I hope this clarifies the matter for the Deputy.