No water charge relief for thousands of poor households

Thousands of the State’s poorest households are set to get no relief on their water charges from the measures announced in the Budget.

Households headed by the short-term unemployed or low income workers who do not earn enough to pay tax, were not included in the lists of those entitled to water charge reliefs.

Minister for Finance Michael Noonan income tax relief will be available at the standard rate of 20 per cent in respect of water charges up to a maximum of €500 per household per year – a maximum saving of €100 per household.

In his speech, Minister for Public Expenditure Brendan Howlin said a water subsidy worth €100 per annum would be given to all recipients of the household benefits package and all recipients of the fuel allowance schemes.

This measure covers all those over 70 and those on long-term social welfare payments, a total of 653,000 households, Mr Howlin said. However those who are unemployed for less than a year are not entitled to either of these benefits, nor are workers whose income is too low to pay tax.

Some 190,000 people are short-term unemployed. Some of this group will be living in households where there is a tax-paying worker who will be entitled to claim tax relief, or with an elderly or long-term unemployed person who will be eligible for the €100 subsidy.

A spokeswoman for the Department of Social Protection said it had not calculated how many of those short-term unemployed or low income workers were living alone, or in households which would not be entitled to reliefs. She added that people who refused to pay their water charges would not lose either of these benefits.

Tánaiste and Minister for Social Protection Joan Burton said she will examine the situation with a view to providing assistance to low income families with water costs.

A spokeswoman for Irish Water said it had been given no prior information about the measures announced in the Budget, however she said only customers of Irish Water could claim reliefs or benefits in relation to their charges.

The Right2Water campaign, which represents a number of trade unions and political parties opposed to the charges, said the Government had “panicked” in response to last Saturday’s protest in Dublin against water charges.

“The Government added a new anomaly to its crumbling water tax edifice by introducing a tax credit and extending the Household Benefits package - leaving hundreds of thousands of low earners who do not earn enough to pay tax, and will not qualify for the Household Benefits package, empty handed.”

While those who do qualify for the water subsidy get a flat €100 cut, households claiming tax reliefs will only be able to claim the maximum €100 relief if they pay charges almost twice what the Government has said will be the national average annual bill.

The Government has said an average annual water bill for a family of two adults and two children will be €278.16.