The 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.
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.
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 increased from June 2022 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 was also increased in June from €20,000 to €50,000 for Carer’s Allowance. This will allow carers who have accumulated savings, often to provide care for a loved one, to retain an entitlement to Carer's Allowance.
Last week, as part of Budget 2023, I was pleased to announce a €12 increase in weekly payments from next January. This includes Carer's Allowance. I am also increasing the Qualified Child rate by €2 per week, and the Domiciliary Care Allowance will increase to €330 per month. Carers will also receive a once-off payment of €500 in November which will help families to meet household costs.
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 context.
I trust this clarifies the matter for the Deputy.
