I propose to take Questions Nos. 5 and 14 together.
Report number 3 of the National Economic and Social Forum recommended that:
"... a substantial means disregard should be introduced into the current carer's allowance so that this allowance can genuinely become a supplement to support the work of the carer."
The report referred to the effect of the means test on the amount of the carer's allowance in cases where the spouse of the carer was employed and it pointed out that no carer's allowance was payable where the working spouse was earning more than £120 per week.
The social welfare Bill which is before the House at present provides for the introduction of a significant improvement in the carer's allowance. I am particularly pleased to be able to provide in the Bill an earnings disregard of £100 per week in respect of working spouses with effect from next July.
This means, for example, that a carer whose spouse has earnings of £160 a week and who is not, therefore, entitled to any allowance at present, will receive a weekly carer's allowance of £34 a week from next July. In terms of numbers, this improvement in the means test means that an extra 500 full-time carers will qualify for the allowance while a further 350 existing carers will get an increase in their weekly payment.
Carers will also benefit from the general 3 per cent increase in weekly payments which will bring the basic allowance to £61 per week. In addition, the initial £2 means disregard for entitlement to the full allowance is being increased to £6 a week. Furthermore, a pensioner being cared for by a recipient of a carer's allowance will, in future, retain entitlement to the free telephone rental allowance where previously it would have been discontinued because the living alone condition would no longer have been satisfied.
At the end of December 1993, allowances were being paid to 4,748 carers.