Dáil Éireann Debate, Thursday - 9 February 2023
2. Deputy Sean Sherlock asked the Minister for Social Protection if income disregards could be reviewed for the purposes of assessment of means for carer’s allowance, with a view to ensuring that the income of a spouse, civil partner, or cohabitant where they work overtime, would not disbar an applicant for eligibility for the carer's allowance. [5993/23]
View answerI ask the Minister for Social Protection whether income disregards could be reviewed for the purpose of assessment of means for carer's allowance with a view to ensuring the income of spouses, civil partners or cohabitants, where they work overtime, will not disbar an applicant from eligibility for carer's allowance.
The Government recognises the important role family carers play in Irish society and is fully committed to supporting them through a range of payments and services. For this reason, the annual carer's support grant, which is paid in respect of each care recipient, is not means-tested and is not taxable. The grant is currently paid at a rate of €1,850 per year, which is the highest rate at which it has been paid since it was first introduced in 1999.
As part of budget 2023, I announced a range of measures directly benefiting family carers, particularly in light of the current cost-of-living crisis.
In addition, in response to carer organisations and the voices of family carers, significant changes were made to the carer's allowance means test in recent years, notably as part of budget 2022. The capital and savings disregard for the carer's allowance means assessment was increased from €20,000 to €50,000, aligning it with that which applies for disability allowance. The weekly income disregard was increased from €332.50 to €350 for a single person and from €665 to €750 for carers with a spouse or partner. As a result, following these changes, carer's allowance disregards are the highest income disregards in the entire social welfare system, with the result that a two-person household, such as that referenced in the Deputy's question, can now earn about €39,000 per annum without their carer's payment being affected.
While I understand the Deputy's concern, I also have to have regard to the needs of other welfare recipients and how best we can allocate our resources given competing demands. I have, therefore, committed to a carrying out broad review of means testing this year which will include, but not be limited to, carer's allowance means test provisions.
The Minister will be aware of the specific case to which I referred, even though I have anonymised the details. I welcome the fact the Minister will carry out a review. I take her at her word in that regard.
I acknowledge the fact the Government has increased the income disregard from €665 to €750 for a couple. The scenario I am talking about involves a couple where there were two parents, one of whom is working while the second forgoes a career to care for a son or daughter and also forgoes a lot of opportunities, and does so absolutely willingly. The person then finds that because they are locked out of the system and because of an increase in income due to overtime, all other benefits accruing to the family are lost. It is those small exceptions in schemes that we are speaking to here. A small number of couples throughout the country are affected by this. It is to be hoped they will be included in any review that the Minister undertakes.
I thank Deputy Sherlock. I know the case he has raised with me, and I understand the point he is making. From a social protection perspective, income is income and means tests are based on income. As I said, we are going to do a review of all the means tests because some, in terms of capital, are around €20,000, a figure that has not been changed in a long time. I expect to be in a position to increase that because €20,000 would buy one a car years ago but would not buy much now. That is the reality of the world we live in. I am happy to look at that.
One of my priorities since I became Minister for Social Protection is to do whatever I can to support our carers because we all know the huge work they do and the contribution they make to our society. In my first budget, I increased the carer's support grant. In budget 2022, I was the first Minister in 14 years to make changes to the carer's means test. This year, I ensured carers got the special €500 carers support grant before Christmas. They also got double payments in October and before Christmas.
The incremental, but substantial, improvements made under the Minister's mandate are acknowledged. The scenario I am talking about is where a spouse has to work all of the hours God gives them to bring income into a family while their spouse is caring for a person, but all of a sudden the income is gone. It puts tremendous pressure on the family. If something could be done in respect of the income disregard I would welcome that. I would be happy to furnish the Minister with further details of this particular family's circumstances in the context of the review she will carry out, with a view to her potentially considering that family's scenario. I am sure it is typical of many scenarios throughout the country.
As I said, the review of means testing will look at everything. It is income. It is like the SUSI grant, where parents work extremely hard all of the hours God sends them in preparation to send a child to college. Suddenly the parent is assessed on the previous year's income, which they had worked so hard to get. Unfortunately, when we have means testing there will be cut-off points. In changing the system, I raised the limit to the €750 mark. That change included a lot more people. However, when there is a cut-off point somebody is going to lose out. I understand the situation the Deputy is talking about.
In terms of carers, I would also like to see the HSE and the Department of Health step more into this space. I cannot pay people for the work they do; I can only support them in terms of their income. We should consider how we reward carers for the work they do.
The Minister is in government.
I cannot be across every Department.
