From August 1999, full-time carers of children in receipt of a domiciliary care allowance will be entitled to apply for a carer's allowance under the same qualifying conditions as all other carers. It is estimated that this will benefit over 2,200 carers at an annual cost of £9.5 million.
According to the Department of Health and Children, there were approximately 9,100 recipients of domiciliary care allowance at the end of 1998. The cost of abolishing the carer's allowance means test for carers of the remaining recipients of domiciliary care allowance could cost in the region of £27.5 million annually with an additional expenditure of £1.4 million on the annual respite care grant.
As the Deputy will be aware a major review of the carer's allowance was published in October 1998. The submissions and proposals of all organisations representing carers were considered as part of the review process and are comprehensively addressed in the report. One of the major issues raised by these groups was the removal or easing of the carer's allowance means test. The review examined the means test and considered that it should be maintained as a way of targeting scarce public resources towards those who are most in need. The means test applied to the carer's allowance is one of the less restrictive tests associated with social welfare payments.