Richard Bruton
Question:399 Mr. R. Bruton asked the Minister for Social, Community and Family Affairs the total value of payments under the carer's allowance; and the total number of beneficiaries. [23092/00]
Written Answers. - Carer's Allowance.
At the end of September 2000 there were 16,071 recipients of carer's allowance. There were also 902 children in respect of whom a full rate qualified child allowance was payable and 13,114 children in respect of whom a half rate qualified child allowance was payable. The total number of beneficiaries was 30,087.
Expenditure in 2000 on carer's allowance is projected to be £78.8 million.
Richard Bruton
Question:400 Mr. R. Bruton asked the Minister for Social, Community and Family Affairs the cost of relaxing the means disregard from £150 married to £250 married under the carer's allowance. [23093/00]
The carer's allowance is a social assistance payment which provides income support for carers on low incomes who look after people, including children, who need full-time care and attention.
Based on the research carried out in the review of the carer's allowance, which was published in October 1998, the current number of full-time carers is estimated to be around 50,000 people, covering carers of older people and adults and children with disabilities. There are currently 16,137 carers in receipt of carer's allowance. These figures show that 32% of full-time carers are in receipt of a carer's allowance payment which is an increase of 75% in the number of carers in receipt of the allowance since this Government took office. This large increase is reflected in the expenditure on carer's allowance, which was £36.5 million in 1997 and is projected to be £78.3 million this year, representing an increase of 115%.
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 income from employment and other sources. The effect of these changes means that a couple with two children could have a joint annual income of £9,152 and qualify for the maximum carer's allowance while a couple with up £19,500 could still qualify for a minimum carer's allowance, and also receive an annual respite care grant and the free schemes.
It has been previously estimated that increasing the means disregards to £125 for a single person and £250 for a couple would increase the payment of approximately 2,200 existing carers at a cost of approximately £3.5 million. It is very difficult to estimate the number of additional carers who would qualify as income data are not available. However, additional costs in the region of £15 million would be incurred if an estimated additional 3,000 carers qualified leading to a total increase of £18.5 million approximately in overall expenditure.
The estimated cost of abolishing the means test and extending carer's allowance at existing levels to all full-time carers would be in the region of £179 million annually. If one were to cost this proposal using the number of carers estimated by the care groups, this figure would rise to £547 million annually.
The review of the carer's allowance noted that the allowance is an income support payment and not a payment for caring. It examined the means test and considered that it should be maintained as a way of targeting resources towards those who are most in need. There are a wide range of services required, including community care and respite care, to support carers in their caring role. It is doubtful if a payment to all carers, regardless of their income, could be considered to be the best use of resources. However, the position in regard to the means 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.