Bríd Smith
Ceist:1569. Deputy Bríd Smith asked the Minister for Social Protection the amount it would cost to means test carer's and disability allowances on net income rather than gross income. [36407/17]
Amharc ar fhreagraWednesday, 26 July 2017
Ceisteanna (1569)
Freagraí scríofa
The Department provides a range of income support payments for people with disabilities and to carers who provide full-time care and attention to those with a disability that require that level of care. Applicants who do not have the necessary social insurance contributions can apply for means tested social assistance payments, namely carer's allowance (CA) and disability allowance (DA).
Under both schemes assessable income is defined as gross earnings less PRSI and superannuation. Data is not available on the net earnings of recipients, which would also take into account the income tax that they pay. Consequently, it is not possible to produce a costing to means test carers and disability allowances on the basis of net income rather than gross income.
The means test for carers is one of the least onerous within the social protection system. The amount of weekly income that is currently not taken into account is €332.50. In the case of the income of a married couple, civil partners or cohabitants, the first €665 of their combined weekly income is disregarded. A couple under 66 with two children, earning a joint annual income of up to €35,400 can qualify for the maximum payment of Carer’s Allowance while such a couple earning €59,300 will still qualify for the minimum rate. Furthermore, single care recipients cannot work outside the home for more than 15 hours per week and it is unlikely that they pay income tax on their earnings.
A person on disability allowance may earn up to €120 per week without their payment being affected. Earnings of between €121 and €350 per week are assessed at 50% for means test purposes. Most disability allowance recipients who avail of the work related disregards would work only part-time and it is also unlikely that they pay income tax on their income from employment.