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Social Welfare Code

Dáil Éireann Debate, Tuesday - 3 October 2023

Tuesday, 3 October 2023

Questions (420)

Michael Lowry

Question:

420. Deputy Michael Lowry asked the Minister for Social Protection if she can confirm when the income limit for the carer's allowance means test was last reviewed by her Department; if she is aware that the current income limit appears to be excessively restrictive, particularly in light of recent wage increases aimed at offsetting the significant rise in the cost of living, including the substantial increase in mortgage interest rates (details supplied); if she will give serious consideration to raising the income threshold to a more realistic level, or even consider abolishing the income threshold for carers; and if she will make a statement on the matter. [42489/23]

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Written answers

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 income supports provided by my department are kept under constant review. Since my appointment as Minister, I have made a number of significant improvements within the social welfare system to enhance the supports available for our carers.

The income and capital disregards for Carer's Allowance were last increased in Budget 2022. These were the first changes to the means test in 14 years:

• 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.

• 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 current Carer's Allowance disregards are the highest income disregards in the social welfare system and mean that, in the case of a couple, earnings of up to €41,500 a year are disregarded.

Removal of the means assessment for Carer’s Allowance, as the Deputy suggests, would change the scheme from a targeted income maintenance support for those most in need to a new universal social protection scheme for those meeting the scheme’s basic caring condition. This would give rise to a very significant annual cost.

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.

As part of Budget 2023, I announced a range of measures directly benefitting family carers. These included:

• A €12 increase in the maximum rate of Carer’s Allowance and Carer’s Benefit took effect from January 2023 with proportionate increases for people receiving a reduced rate.

• A €2 increase for each Qualified Child bringing rates to €50 for Over 12s and €42 for Under 12s from January 2023.

• The Half-rate Carer’s Allowance is now disregarded in the means assessment for Fuel Allowance since January 2023.

• Domiciliary Care Allowance increased by €20.50 to €330 per month with effect from January 2023.

• Domiciliary Care Allowance is now available in respect of children with severe illness or disability who remain in hospital for up to six months after birth.

Significant Cost-of-Living lump sum payments were also provided for carers. These included:

• Double Payments last October and December.

• €500 for people receiving Carer’s Support Grant paid in November 2022 and a further Cost of Living lump sum payment of €200 was paid to Carers in April 2023.

Notwithstanding the increased level of support already in place for carers, I have asked my department to keep these measures under review as part of the annual budgetary process.

I trust this clarifies the matter for the Deputy.

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