Bernard J. Durkan
Ceist:283 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs his plans to extend the carer’s allowance significantly; and if he will make a statement on the matter. [5547/08]
Amharc ar fhreagraWednesday, 13 February 2008
Ceisteanna (188, 189, 190)
Bernard J. Durkan
Ceist:284 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs his proposals to extend the carer’s allowance by way of easing the means test thereby providing facilities to a greater number of people who might otherwise become institutionalised; and if he will make a statement on the matter. [5548/08]
Amharc ar fhreagraBernard J. Durkan
Ceist:285 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs his views on awarding contribution credits to carers who have provided care on a full-time basis to such an extent that they themselves were prevented from entering the work force and as a consequence failed to qualify for a contributory pension; and if he will make a statement on the matter. [5549/08]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 283 to 285, inclusive, together.
Supporting and recognising carers in our society is, and has been, a priority of the Government since 1997. Over that period, weekly payment rates to carers have greatly increased, qualifying conditions for carer's allowance have significantly eased, coverage of the scheme has been extended and new schemes such as carer's benefit and the respite care grant have been introduced and extended. The primary objective of the carer's allowance is to provide income support to low income carers and in line with other social assistance schemes, is means tested. This ensures scarce resources are directed at those in greatest need.
The carer's allowance means test is one of the more flexible tests in terms of the assessment of household incomes. The means test has been significantly eased over the years, most notably with regard to spouse's earnings. Since April 2007, the income disregard has been €320 per week for a single person and €640 per week for a couple. Budget 2008 provided for the disregards to be increased further to €332.50 per week for a single person and €665 per week for a couple from April 2008. These increases surpass the "Towards 2016" commitment to ensure those on average industrial earnings continue to qualify for a full carer's allowance.
In 2005, the respite care grant was extended to all people providing full time care regardless of their means or social insurance contributions. Since then, the grant has also been paid in respect of each care recipient. From June 2008, the grant will be €1,700 per year in respect of each care recipient. Credited contributions, or ‘credits' as they are termed, are intended to protect the entitlements, particularly the pension rights, of employees and other persons participating in the social insurance system when they are ill or unemployed. A person who is providing full time care and attention to a person as a carer is awarded credits on the same basis as if they were out of the workforce due to illness or unemployment.
Under the current statutory provisions governing the award of credited contributions, recipients of the carer's allowance may be awarded credits if they switched to that payment from another credit-bearing payment such as jobseeker's allowance. From April 1999, formal provision was made for the award of credits to claimants of carer's allowance who have left insurable employment to engage in caring duties. People in receipt of carer's benefit or on carer's leave are awarded credits at the same rate as their last paid contribution. Recipients of carer's allowance, who are not entitled to credits, may be eligible for homemaker's disregards which preserve the carer's entitlement for contributory pension purposes.
The homemaker scheme provides that contribution years spent working in the home while caring on a full-time basis for a child up to 12 years of age or an incapacitated person will be disregarded in calculating a person's yearly average number of contributions for state pension (contributory) purposes. The provisions apply from the contribution year commencing on 6 April 1994 and up to 20 contribution years may be disregarded.
The award of credits is subject to certain conditions. For example, when a person has no paid or credited contributions for a period of two years, they cannot be awarded further credits until 26 contributions are paid. In recognition of their caring role, this rule will be waived where claimants of carer's allowance were eligible for homemakers disregards immediately prior to claiming carer's allowance. This, in effect, means that credits will be awarded where a person who has a gap of two years in their paid or credited contributions was eligible for homemakers disregards before claiming carer's allowance. This will protect the position of people who did not give up work to become carers but may have qualified for homemakers disregards due to child-minding duties and who subsequently became carers after a two year period had expired.
From June 2006 the number of hours a person can engage in employment, self employment, education or training outside the home and still be eligible for carer's allowance, carer's benefit and the respite care grant was increased from 10 to 15 hours per week. Where a carer remains in employment he or she will continue to pay the appropriate social insurance contribution. I will keep the supports for carers available from my Department under review in order to continue to improve the schemes and ensure commitments on income support are delivered.