The carer's allowance is a social assistance payment which provides income support to people on low incomes who look after those in need of full-time care and attention. As with all other social assistance schemes, a means test, in which the income of both the carer and his-her partner is assessable, is applied to the carer's income. This ensures resources are directed to those in greatest need.
Provision has been made in successive budgets for substantial increases in the income disregards. From next April, the weekly income disregards will increase to €250 for a single carer and to €500 for a couple. The effect of this increase is that a couple with three children, earning a joint income of up to €29,458 can qualify for the maximum rate of carer's allowance. The same couple, if they had an income of €47,400 could still qualify for a reduced rate of carer's allowance, free travel, household benefits and the respite care grant.
In addition, where the income being assessed is earned by the carer's spouse the following amounts are deducted from the carer's income: €2.54 per week in respect of each child maintained by the couple; and amounts paid in respect of PRSI, union dues and travel expenses. Carers of more than one incapacitated person are entitled to an additional 50% of their rate of payment. This is an acknowledgement of the particular difficulties, both financial and personal, which are faced by these carers. These recipients also receive a double respite care grant in June each year. Budget 2004 made provision for an increase of €200 in this amount to €1,670 from June 2004.
The Deputy's proposal to change the carer's allowance means test along the lines of the higher education grants means test is one of a range of proposals which are made from time to time. All these proposals would involve additional expenditure and could only be considered in a budgetary context.