The Government is acutely aware and appreciative of the societal contribution made by carers and recognises this in social welfare provision. The estimated expenditure for carers in 2011, including carer's allowance, carer's benefit and respite care grant is approximately €658 million compared to just under €100 million in 2000. This does not include the cost of the household benefits package or free travel which carers also receive.
Since the introduction of the carer's allowance in 1990 payments to carers have been increased and expanded greatly. Even with the reductions announced in the last two budgets for carers under 66, the weekly rate of payment for the carers allowance is still almost 33% higher this year than in 2005 and almost double what it was in 2000.
Recipients of carer's allowance are also eligible for household benefits, free travel and the respite care grant of €1,700.
The means test for carer's allowance has been significantly eased over the years, and is now one of the most generous means tests in the social welfare system, most notably with regard to spouse's earnings. Since April 2008, the income disregard has been €332.50 per week for a single person and €665 per week for a couple. This means that a couple with two children can earn in the region of €35,400 and qualify for the maximum rate of carer's allowance as well as the associated free travel and household benefits. A couple with an income in the region of €59,300 can still qualify for a minimum payment, as well as the associated free travel, household benefits package. These levels ensure that those on average industrial earnings continue to qualify for a full carer's allowance.
The carer's allowance is an income support provided for those who are unable to take up full-time paid employment due to their caring responsibilities. It is not possible simply to reclassify it as earned income, subject to PRSI contributions. Persons in receipt of carer's allowance, carer's benefit and the respite care grant may, however, engage in employment, self employment, training or education outside the home for up to 15 hours per week and still be considered to be providing full-time care and attention for the purposes of the schemes. This means that where a carer remains in employment he or she will continue to pay the appropriate social insurance contribution. Also, any person, including carers, may pay voluntary contributions once they satisfy certain qualifying conditions.
People who qualify for payments such as carer's allowance or carer's benefit may, subject to conditions, qualify for credited contributions for the period they are receiving the payment.
Credited contributions form an integral part of the social insurance system. They are underwritten by the Social Insurance Fund and are designed to protect the social insurance entitlement record of insured workers who — for reasons relating to incapacity, ill-health, unemployment, early retirement, professional training or the provisions of care (i.e. for children, the disabled or the elderly) — are not in a position to make PRSI payments.
In addition, the social welfare pension rights of those who take time out of the workforce for caring duties are protected by the homemaker's scheme which was introduced in 1994. The scheme allows up to 20 years spent caring for children or incapacitated adults to be disregarded when a person's social insurance record is being averaged for pension purposes.
The homemaker's scheme will not of itself qualify a person for a pension. The standard qualifying conditions, which require a person to enter insurance 10 years before pension age, pay a minimum of 260 contributions at the correct rate (rising to 520 from April 2012), and achieve a yearly average of at least 10 contributions on their record from the time they enter insurance until they reach pension age, must also be satisfied.