Dáil Éireann Debate, Thursday - 30 July 2020
868. Deputy Pauline Tully asked the Minister for Employment Affairs and Social Protection the estimated cost of removing the means test from the carer's allowance; and if she will make a statement on the matter. [20446/20]
View answerThe Government acknowledges the important role that family carers play and is fully committed to supporting carers in that role. This commitment is recognised in both the Programme for Government and the National Carers’ Strategy.
The main income supports to carers provided by my Department are Carer’s Allowance, Carer’s Benefit, Domiciliary Care Allowance and the Carer’s Support Grant. The projected expenditure on Carer’s Allowance in 2020 is approximately €919 million. Combined spending on all these payments to carers in 2020 is expected to exceed €1.3 billion.
Carer's Allowance is a means-tested payment for carers who look after certain people in need of full-time care and attention on a full-time basis. The means test for Carer's Allowance is one of the most generous in the social welfare system, most notably with regard to spouse’s earnings. The amount of weekly earnings disregarded is €332.50 per week for a single person and €665 per week for a couple.
A couple earning a joint annual income of up to €37,500 can qualify for maximum payment and, given the tapered withdrawal approach, retain a payment of just under half-rate while earning €49,750.
A single person may retain a full-rate payment while having an annual income of just under €19,000, and retain a payment of just under half-rate while having an annual income of €25,400.
A half-rate carer's allowance is also payable with other welfare payments e.g. pensions and disability payments.
The system of social assistance supports provides payments based on an income need. The means test plays a critical role in determining whether or not an income need arises as a consequence of a particular contingency – such as disability, unemployment or caring.
The continued application of the means test not only ensures that the recipient has a verifiable income need but that resources are targeted to those with greatest need. Abolition of the means test for Carer’s Allowance would give rise to a very significant annual cost. Based on the number of carers identified in Census 2016, it is estimated that a universal carer’s payment could cost in the order of an additional €1.2 billion per annum.
I recognise the valuable role that family carers play in Irish society and will continue to seek to improve the supports for carers. However, any changes must be considered in an overall policy and budgetary context.
I trust that this clarifies the matter for the Deputy.
