Michael Moynihan
Question:98. Deputy Michael Moynihan asked the Minister for Social Protection the status of a review of carer’s payments; and if she will make a statement on the matter. [26263/21]
View answerTuesday, 18 May 2021
Questions (98)
Written answers
The main income supports provided by my Department include Carer's Allowance, Carer's Benefit, Domiciliary Care Allowance, and the Carer's Support Grant. Over 135,000 carers benefit from regular income supports and spending on these payments in 2021 is expected to be in the region of €1.5 billion. The value of income transfers to family carers has increased by over 50% since 2015.
Carer's Allowance acts as an income support for those who cannot earn adequate income in the open labour market due to their caring responsibilities. 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.
A comprehensive Policy Review of Carer’s Allowance, including an examination of the means test, was prepared by my Department and was laid before the Houses of the Oireachtas at the end of August 2019. In addition, in August 2019, the Department of Public Expenditure and Reform published a Spending Review of Carer’s Supports, including Carer's Allowance. Among its key findings was that of the €1.04bn spent on Carer’s Support Programmes in 2018, Carer’s Allowance accounted for 77% of total support spend on carers. Given how little time has elapsed since these two in-depth reports on carer’s schemes were published, I do not propose to conduct another report on the area at this time.
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.
Changes to schemes are considered in an overall expenditure and policy context and from an evidence-based perspective. Those existing carers whose sole income is the Carer’s Allowance would not benefit. An increase in the means disregard would benefit just 3% of carers and benefit better-off families. Increases to the disregard would result in the provision of additional payments to people who may have significant sources of income while reducing the scope to provide income supports to lower income households.
Carer's Benefit is a payment made to insured people who leave the workforce to care for someone in need of full-time care and attention. A person may be eligible for Carer's Benefit if they have enough PRSI contributions. Carer’s Benefit is payable for a maximum period of 104 weeks for each person being cared for. It can be taken in one block or in separate periods as long as the combined total does not exceed 104 weeks.
From an evidence based perspective it should be noted that not all those claiming Carer’s Benefit opt to remain in payment for the full 104 weeks. My Department has examined this matter and found that the average duration on Carer’s Benefit was 76.5 weeks between 2018 and 2020. Therefore, the current 104-week payment duration represents a reasonable length of time to support a carer’s temporary absence from work. Where care is provided beyond the period of entitlement to Carer’s Benefit, the means tested Carer’s Allowance is available for those who are in need of income support. These arrangements ensure an efficient use of public funds while assisting those who are in most need of an income support.
Furthermore, the right to carer's leave from employment complements the Carer's Benefit Scheme. The Carer's Leave Act 2001 allows employees to leave their employment temporarily to provide full-time care for someone in need of full-time care and attention. A person is entitled to take carer’s leave of at least 13 weeks up to a maximum of 104 weeks. Carer's leave from employment is unpaid but the Carer’s Leave Act ensures that people who want to take carer's leave will have their jobs kept open for them while they are on carer's leave.
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. However, any improvements or additions to these supports can only be considered in an overall budgetary context and in the light of available financial resources.
I hope this clarifies the matter for the Deputy.