Vol. 519 No. 3
203 Mr. Wall asked the Minister for Social, Community and Family Affairs if he will investigate the means test system operated by his Department with a view to increasing the child allowance from £2 to a more meaningful figure which would allow persons to claim this allowance; and if he will make a statement on the matter. [13807/00]
It is understood that the Deputy is referring to means testing and the carer's allowance. The carer's allowance is a social assistance payment which provides income support to carers on low incomes who look after people who need full time care and attention.
As part of the Government's commitment to carers, as set out in An Action Programme for the Millennium, an overall review of the carer's allowance was completed by an interdepartmental committee, chaired by my Department, and 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 issues examined in the course of the review was the means test applied to the carer's allowance scheme.
As with all other social assistance schemes, a means test in which the income of both the applicant and his-her partner is assessable is applied to the carer's allowance to ensure that limited resources are directed to those in greatest need. The means test has been eased significantly in the past few years, most notably with the introduction of disregards of the income from employment and other sources. In line with budget 1999 changes which came into effect last August, the first £150 of joint weekly income for married carers is not taken into account in the means test. In the case of single carers, the first £75 of weekly income is disregarded. In addition, PRSI, superannuation, union dues and reasonable travel expenses are deducted from the gross earnings from insurable employment as is £104 per annum in respect of each qualified child.
The review of the carer's allowance noted that the means test applied to the carer's allowance is one of the more generous tests in terms of the assessment of household income. It considered that the means test should be maintained as a way of targeting public resources towards those who are most in need. The position and operation of the test will be kept under review.
The question of further improvements to the carer's allowance and for carers generally will be considered in a budgetary context, taking account of our key priorities in the care area, as set out in the review of our action programme.
204 Mr. Wall asked the Minister for Social, Community and Family Affairs if he will investigate the means test scheme operated by his Department and allow mortgage payments to be deducted from a persons income in assessing their application for the carers allowance; and if he will make a statement on the matter. [13808/00]
The carer's allowance is a social assistance payment which provides income support to carers on low incomes who look after people who need full time care and attention.
As with all other social assistance schemes, a means test in which the income of both the applicant and his-her partner is assessable is applied to the carer's allowance to ensure that limited resources are directed to those in greatest need. The means test has been eased significantly in the past few years, most notably with the introduction of disregards of the income from employment and other sources. In line with budget 1999 changes which came into effect last August, the first £150 of joint weekly income for married carers is not taken into account in the means test. In the case of single carers, the first £75 of weekly income is disregarded.
Mortgage payments are not taken into account in determining means for carer's allowance purposes. The supplementary welfare allowance – SWA – scheme provides for a weekly or monthly supplement to be paid in respect of rent or mortgage interest to any person in the State whose means are insufficient to meet their needs. Entitlement to a supplement is determined by the health boards.
Rent and mortgage interest supplements are normally calculated to ensure that the person, after the payment of rent or the interest portion of the mortgage, has an income equal to the SWA basic weekly payment rate, less £6. This £6 represents the minimum contribution which recipients are required to pay from their own resources. In addition to the minimum contribution, applicants are required to contribute any assessable means in excess of the appropriate SWA rate. Therefore if an applicant has means over and above the SWA rate for his family size then the amount of his mortgage interest supplement is reduced £1 for £1 of the increase.
However, special arrangements were put in place in 1996 for carers which allowed them to have a greater income and still qualify for a mortgage interest supplement. Where the carer is one of a couple the amount disregarded when assessing entitlement is the rate of carer's allowance in payment less the current SWA qualified adult allowance as follows: carers allowance £80.50 – SWA £47 = £33.50. This amount of £33.50 will be disregarded in the assessment of means for mortgage interest supplement.
Furthermore, under budget 2000 from 6 April 2000, the first £25 a person has from part-time earnings are disregarded in the assessment of means for mortgage interest supplement.
In the circumstances, the provision of additional assistance to social welfare recipients by way of disregards in respect of mortgage payments under the means-tested social assistance payments, including the carer's allowance scheme, is considered adequate and will be kept under review.
