The terms of reference for the working group on the review of the carer's allowance were as follows: to examine and report on the carer's allowance scheme with a view to identifying its objectives, having regard to both the needs of the carer and the care recipient; considering the extent to which these objectives remain valid and compatible with the mission and current strategy of the Department. This included examining the current qualifying criteria and the controls, to ensure the scheme is operating effectively; evaluating the extent to which these objectives have been achieved, having due regard to the views of both the carers themselves and all other interested parties, e.g. the Department of Health and Children, health boards, pensions/insurance industry etc. and establishing the level and trend of the cost, staffing and other resources associated with the carer's allowance scheme; defining the outputs associated with the scheme activity and identifying the level and trend of those outputs, having due regard to the future implications of demographic, social and economic changes in both the carer and care recipient groups; commenting on how efficiently and effectively the scheme has achieved its objectives, using other OECD countries for comparison purposes; evaluating the degree to which the objectives warrant the allocation of public resources on a current and ongoing basis, and if so, whether the current allocation is appropriate; examining the scope for alternative policy and/or organisational approaches to achieving the objectives on a more efficient and effective basis. Alternatives to be examined included a contributory social welfare benefit arrangement, other private sector arrangements and use of tax relief; and specifying suitable performance indicators which can be used to monitor and evaluate the scheme in the future.
The group considered that there were three main objectives of the allowance which can be described as follows: to provide income support to full-time carers on low incomes; to maintain people in the community; and to recognise and support the valuable role of carers. Following a detailed examination of the review, which was published in October 1998, and its proposals on the improvement and development of the carer's allowance, I introduced a range of measures in the 1999 budget to improve and develop the position of carers. Over 11,500 existing carers will benefit from the measures I have introduced while an additional 3,300 new carers will now qualify for a carer's allowance.
This budget package, costing over £18 million, represents a 40 per cent increase on existing expenditure and is a very considerable addition to the £45 million spent on carers in 1998. In addition, the rate of the carer's allowance will increase in June this year by £3 per week for recipients of the allowance who are under age 66 and by £6 per week for those who are over age 66. This represents an increase of 4.1 per cent and 7.9 per cent, respectively, on current rates.
Other measures proposed in the review which will be advanced this year include the introduction of a needs assessment, encompassing both the needs of the care recipient and the carers. This would separate care needs from income support and could be used by all State organisations which provide reliefs or grants to those in need of care. A working group, chaired by Dr. Tom Moffatt, Minister of State at the Department of Health and Children, and also comprising representatives from my Department, the health boards and the voluntary groups has been set up to advance this proposal.