Dáil Éireann Debate, Tuesday - 26 April 2022
1091. Deputy Brian Stanley asked the Minister for Social Protection if she will review the criteria for means testing the carer's allowance in order to take in not just income but also unavoidable outgoings such as mortgage repayments; and if she will make a statement on the matter. [21119/22]
View answerThe 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. This ensures that the recipient has a verifiable income need and that resources are targeted to those who need them most.
In Budget 2022, I announced significant improvements to the means test for Carer's Allowance, in recognition of the vital role that carers play in society.
The general weekly income disregard for Carer's Allowance will be increased from €332.50 to €350 for a single person, and from €665 to €750 for a couple. This will enable more carers with modest incomes to become eligible for the scheme, and those currently in receipt of a reduced payment may now receive a higher payment.
The capital disregard will also be increased from €20,000 to €50,000 for Carer’s Allowance. This will allow carers who have accumulated relatively modest savings, often to provide care for a loved one, to retain an entitlement to Carer's Allowance.
In addition to these changes to the means test, all recipients of a weekly carers payment will have seen a €5 increase from January 2022. Those with children will also have seen an increase in the qualified child payment - €2 increase for children under the age of 12, and €3 for children aged 12 and over - bringing these payments to €40 and €48 per week respectively.
By its nature, the means test takes account of the income a person or couple has in terms of cash, property - other than the family home - and capital. It does not take account of a person’s expenditure.
Introducing a rent or mortgage disregard for Carer's Allowance would have significant budgetary implications and would give rise to inconsistencies in how means tests are applied across schemes. It would also significantly increase the complexity of the means assessment. Any changes in this regard would have to be considered in the overall policy and budgetary context.
