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.