Dáil Éireann Debate, Tuesday - 25 April 2023
383. Deputy Brendan Griffin asked the Minister for Social Protection if she will remove the means test for carer’s allowance, given the vital role played by carers and the significant contribution they make to the State; and if she will make a statement on the matter. [19591/23]
View answer384. Deputy Brendan Griffin asked the Minister for Social Protection if she will increase the carer’s allowance income threshold for carers, given the significant increase in the cost of living; and if she will make a statement on the matter. [19593/23]
View answerI propose to take Questions Nos. 383 and 384 together.
The Government acknowledges the important role that family carers play and is fully committed to supporting carers in that role. This commitment is recognised in both the Programme for Government and the National Carers’ Strategy.
The key role of my Department is to provide income supports where an income need may arise due to unemployment, illness/disability and caring responsibilities. The payments provided are an income support to people who cannot earn, or can only earn a limited income, and who have no other means or resources to rely upon.The main income supports to carers provided by my department are Carer’s Allowance, Carer’s Benefit, Domiciliary Care Allowance and the Carer’s Support Grant. Spending in 2023 is expected to amount to almost €1.6 billion on these payments.
Carer’s Allowance is primarily aimed at carers on low incomes who look after people in need of full-time care and attention. The two principal conditions for receipt of Carer’s Allowance are that full time care and attention is required and being provided, and that the applied means test is satisfied. The application of the means test ensures that the limited resources available can be targeted at those with the greatest income need.
Removal of the means assessment for Carer’s Allowance, as the Deputy proposes, would not only change the nature of the scheme from a targeted income maintenance support for those most in need and providing full-time care it would, in effect, create a new universal social protection scheme. This would give rise to a very significant annual cost and could only be considered within a wider budgetary context.
A more generous means assessment for Carer’s Allowance has been called for over successive Budgets by organisations representing carers and as part of Budget 2022 I announced significant improvements to the means test for Carer’s Allowance. These were the first changes to the means test in 14 years.
• For carers who work, 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/partner.
• 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. These are the highest disregards in the social welfare system.
In addition to Carer's Allowance, my department also provides a non-means tested payment to carers in the form of Carer’s Benefit. The Carer's Benefit payment is an entitlement based on social insurance contributions. It is a weekly payment made to insured people who may be required to leave the workforce or reduce their working hours to care for a person(s) in need of full-time care. It is payable for a period of 2 years (104 weeks) for each care recipient and may be claimed over separate periods up to a total of two years. Carer’s Benefit is paid at a rate of €237 a week for one care recipient.
Furthermore, the Carer's Support Grant - which I increased to its highest-ever rate of €1,850 - is available to carers who are not on a social welfare payment. For those providing ongoing care and attention for a child aged under 16 with a severe disability, Domiciliary Care Allowance is available and is also not means-tested. As part of Budget 2023, I increased the monthly payment by €21 to its current rate of €330.00.
As part of Budget 2023, I announced further improvements to payments for carers including:
• A €12 increase in the maximum rate of Carer’s Allowance and Carer’s Benefit with proportionate increases for people receiving a reduced rate.
• The Half-rate Carer’s Allowance is now disregarded in the means assessment for Fuel Allowance.
• A double payment for carers paid in October 2022 benefitting over 118,000 carers.
• A €500 payment for people receiving Carer’s Support Grant paid in November 2022.
• Carers received the Christmas Bonus Double Payment.
In February, the Government announced a further Cost-of-Living lump sum €200 payment for those in receipt of weekly social payments, including carers, which will be paid this week.
Finally, I have committed to carrying out a broad review of means testing this year. Changes to any of the schemes on foot of this review will only be done in the context of ensuring the most effective and targeted use of public funds that are required to provide income support on a broad societal level.
I trust this clarifies the matter for the Deputy.
