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Carer's Allowance

Dáil Éireann Debate, Wednesday - 17 February 2021

Wednesday, 17 February 2021

Questions (497)

Pauline Tully

Question:

497. Deputy Pauline Tully asked the Minister for Social Protection the additional cost of expanding the income disregard for carer’s allowance in order that those on an average industrial income qualify (details supplied); and if she will make a statement on the matter. [8549/21]

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Written answers

The main income supports for carers provided by my Department are Carer’s Allowance, Carer’s Benefit, Domiciliary Care Allowance and the Carer’s Support Grant. Combined spending on all these payments to carers in 2021 is expected to exceed €1.4 billion.

Carer's Allowance is a means tested payment made to people whose income falls below certain limits, and who are looking after certain people in need of full-time care and attention.

At the end of December 2020, there were 88,906 people in receipt of Carer's Allowance. The estimated expenditure on Carer’s Allowance in 2021 is approximately €953 million.

This allowance is part of the system of social assistance supports that provide 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. This ensures that the recipient has a verifiable income need and that resources are targeted to those who need them most.

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. By comparison, the income disregard applied to Disability Allowance is €120 per week (as per Budget 2021 this will increase to €140 per week from June 2021). For Jobseeker's Allowance, it is €20 per day up to a maximum of €60, and the balance is assessed at 60%. For Jobseeker's Transitional Payment, the weekly income disregard is €165 with 50% of the balance assessed as means.

It is not possible to estimate the additional cost outlined by the Deputy, as there are too many variables, not least the number of people earning the average industrial income who would potentially also meet the criteria of providing full-time care and would become eligible if the disregard was increased and whether they would be assessed as a single person or a couple.

However, the Deputy should note that under the current means assessment there are scenarios where those in receipt of average weekly earnings of €811.58 (or annual income of €42,202.16), as outlined, would qualify for the payment of Carer's Allowance. For example in the case of a carer whose partner has weekly earnings of €811.58 they may qualify for a weekly payment of €174.00 (almost 80% of the full rate). If they have qualified children, the payment will be higher.

Changes to schemes are considered in an overall budgetary and policy context and from an evidence-based perspective. It should be noted that some 92% of the current recipients of Carer’s Allowance have no means or means of less than €7.60 per week and would not benefit by an increase in the disregard.

I can assure the Deputy that I am very much aware of the key role that family carers play in our society and I will continue to keep the range of supports available to carers under review. Any changes to scheme criteria, however, would have implications for overall spending and would need to be addressed in an overall budgetary context.

I hope this clarifies the matter for the Deputy.

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