Dáil Éireann Debate, Wednesday - 16 October 2019
265. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection if the impact on the income disregard for the carer's allowance was given consideration in view of the increase in the hours permissible to work as announced as part of budget 2020; if the income disregard for carers will be revised in view of the increase in the hours that they can work (details supplied); and if she will make a statement on the matter. [42551/19]
Amharc ar fhreagraAs part of Budget Measures 2020, I announced that those in receipt of Carer’s Allowance, Carer’s Benefit and the Carer’s Support Grant could increase the number of hours they can work, study or attend a training course outside the home from 15 to 18.5 hours. Over 1,200 family carers are expected to benefit from this change at a cost of €11.6 million.
I particularly prioritised this measure in response to the carers I have met who have told me that they found the current number of 15 hours to be too restrictive.
An increase from 15 hours to 18.5 will accommodate increased participation by carers in work or training to strengthen their connection with the labour force, while also serving the additional purpose of reducing the social alienation experienced by many carers. This measure will have a positive impact in the lives of many carers, particularly women; at the end of 2018 over 76 per cent of carers in receipt of Carer’s Allowance were women.
In its pre-Budget submission, Family Carers Ireland proposed an increase in the disregard for Carer's Allowance of €117.50 (single) and €235.00 (couple) per week. My department costed this proposal using the ESRI SWITCH, which estimated a cost of approximately €73 million p.a. With income tax and Working Family Payment offsets, net expenditure is estimated in the order of €55 million p.a.
Changes to schemes have to be considered in an overall budgetary and policy context and from an evidence based perspective. In that respect it is worth noting that 70 per cent of the current recipients of Carer’s Allowance have no means, while a further 18 per cent have means of less than €7.60 per week. In addition, the existing income disregard and means test for Carer’s Allowance is the most generous within the social welfare system, with the amount of weekly earnings disregarded is €332.50 for a single person and €665 for a couple.
I hope this clarifies the issue for the Deputy.
