Dáil Éireann Debate, Tuesday - 8 September 2020
782. Deputy Sean Sherlock asked the Minister for Social Protection the cost of increasing the income disregard for carer’s allowance to €450 for single and €900 for couples; the cost of increasing the €20,000 disregard to €50,000 in the capital formula; and if she will make a statement on the matter. [22588/20]
View answerCarer'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 and whose income falls below certain limits. The principal conditions for receipt of the allowance are that full time care and attention is required and being provided and that the means test which applies is satisfied.
At the end of July 2020, there were 87,611 people in receipt of Carer's Allowance. The projected expenditure in 2020 is over €919 million.
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.
The conditions attached to payment of the allowance are consistent with the overall conditions that apply to social assistance payments generally. This system of social assistance supports provides payments based on an income need with the means test playing the critical role in determining whether or not an income need arises as a consequence of a particular contingency - be that illness, disability, unemployment or caring.
The Department has made an estimate of the cost of increasing the weekly income disregards for Carer’s Allowance to €450 for a single person and to €900 for a couple using the ESRI SWITCH model. This analysis suggests that it would cost in the region of an additional €73 million per annum. However, with income tax and Working Family Payment offsets net expenditure is estimated in the order of €55 million per annum.
Increasing the capital disregard from €20,000 to €50,000 is estimated to cost €2.8 million in a full year. It should be noted that there may be an additional, unknown cost for people who, under current means assessment rules do not qualify for a payment, but would become eligible if the disregard was increased.
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 this clarifies the matter for the Deputy.
