Dáil Éireann Debate, Monday - 11 September 2023
1015. Deputy Michael Lowry asked the Minister for Social Protection in relation to applications for carer's allowance, if she will consider abolishing the means test for carers or, alternatively, if the means of the carer be the sole consideration rather than the total household income when assessing eligibility; and if she will make a statement on the matter. [38072/23]
View answerThe 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.
The two principal conditions for receipt of Carer’s Allowance are that full time care and attention is required and provided, and that a means test is satisfied.
It is important to note that Carer’s Allowance is a financial support to people who cannot earn, or can only earn a limited income, due to their caring responsibilities and who have no other means or resources to rely upon.
The conditions attached to payment of Carer’s Allowance are consistent with the overall conditions that apply to social assistance payments generally. 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.
Means tests are kept under regular review and a number of significant changes have been made in recent years. In particular, I have introduced a number of changes to means testing which provide for higher income disregards. These disregards ensure that, where people are in receipt of a social assistance payment and are working, a certain level of income from that work is not assessed in the means test.
A maximum rate is payable where a person has limited or no means, and tapering applies to the rate payable to those with modest or more substantial means. This is because there is an expectation that those with resources can at least partly contribute towards supporting themselves.
Social welfare legislation provides that, for social assistance schemes, income and capital (such as savings, investments and property other than the family home) belonging to the claimant and his or her partner, where applicable, is assessable for means assessment purposes.
As part of Budget 2022, I introduced 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 the capital means test for Disability Allowance.
The Carer's Allowance disregards are the highest income disregards in the social welfare system.
Removal of the means assessment for Carer’s Allowance, as the Deputy proposes, would change the scheme from a targeted income maintenance support for those most in need to 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.
In addition to Carer's Allowance, my department also provides a non-means tested payment to those carers who have to leave the workforce or reduce their hours in the form of Carer’s Benefit. 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. Furthermore, the annual Carer's Support Grant - which I increased to its highest-ever rate of €1,850 - is also available to carers who are not on a social welfare payment.
Notwithstanding the increased level of support already in place for carers, I have asked my department to keep the current carer supports under review as part of the annual budgetary process.
I trust this clarifies the matter for the Deputy.
