Dáil Éireann Debate, Thursday - 5 May 2022
191. Deputy Claire Kerrane asked the Minister for Social Protection if consideration has been given to increasing the threshold for travel allowance as part of the means testing assessment for carer’s allowance on reflection of the rapidly rising prices of petrol and diesel; and if she will make a statement on the matter. [22370/22]
View answerI am acutely aware that due to the geo-political situation, the increase in consumer prices, especially the increase in fuel and other energy prices, has exceeded even the highest forecasts.
Faced with these challenging circumstances, the Government has acted quickly and decisively to introduce measures aimed at offsetting the increased cost of living for social welfare recipients.
In March, a once-off lump sum of €125 was paid to all households in receipt of the Fuel Allowance payment, at a cost of approximately €49 million. A further additional lump sum payment of €100 will be paid to these households in mid-May – a payment equivalent to over 3 weeks additional Fuel Allowance – costing €37 million.
The increase of €10 to the weekly income threshold of the Working Family Payment was brought forward, taking effect from early April 2022 rather than from June. The €10 increase in all earnings Working Family Payment thresholds results in an increased payment of €6 per week.
In addition, every household in the country has benefitted from the Electricity Costs Emergency Benefit Payment of €200.
These measures are a continuation of the Government’s policy of targeted social welfare increases which has seen significant increases to ancillary payments such as the Fuel Allowance, Living Alone Allowance and Qualified Child payment over the lifetime of this Government, aimed at protecting the most vulnerable recipients. Research has shown that this approach has been effective in recent years, and Ireland’s system continues to be one of the most effective at tackling poverty across the EU.
As part of the Budget 2022 package, 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.
These increases, along with the increase in the general income disregard will provide some protection to recipients of Carer's Allowance who face increased travel costs.
Any further changes to the means test for Carer's Allowance would need to be considered in an overall budgetary and policy context.
