Dáil Éireann Debate, Wednesday - 29 July 2020
87. Deputy Pauline Tully asked the Minister for Employment Affairs and Social Protection if she will consider basing the financial assessment for carer’s allowance on net income and not gross income in line with the assessment of earnings under carer’s benefit; and if she will make a statement on the matter. [19001/20]
Amharc ar fhreagraSocial welfare legislation provides that all income and property belonging to the claimant (and his or her spouse/partner, where applicable) is assessable for means testing purposes for social assistance schemes, such as Carer’s Allowance. In the assessment of earnings, various disregards and tapers are in place which can allow recipients to take up employment. Earnings assessed for means testing purposes generally are based on gross earnings, before tax but after PRSI contributions, superannuation/PRSA contributions and trade union subscriptions.
Current disregards for Carer’s Allowance are €332.50 per week for a single person and €665 per week for a couple, making the means test for carers one of the least onerous within the social protection system. A couple with an annual gross income of up to €37,500 (net of PRSI and other allowable deductions) can qualify for a maximum payment and a couple with an income of up to nearly €60,000 can still qualify for a reduced rate. After the disregards are applied, the vast majority (92%) of Carer’s Allowance recipients are assessed with no means and receive the full rate of payment.
As Carer’s Benefit is a social insurance payment, entitlement is based on the claimant meeting the conditions of the scheme and having paid sufficient social insurance contributions. One of the conditions of Carer’s Benefit scheme is that the carer can only engage in employment or self-employment outside the home which does not exceed 18.5 hours per week and the net earnings derived from that employment do not exceed €332.50 per week. Unlike Carer's Allowance, an applicant's earnings for Carer's Benefit are not assessed to establish their means, but to ensure they are in a position to provide full-time care to the person for whom they are caring.
If net rather than gross income was assessed for Carer's Allowance, it would mean that changes in tax rates or tax reliefs could change the claimant’s rate of Carer’s Allowance and significantly increase the complexity of the means assessment and inevitably prolong the assessment process. It would also have significant budgetary implications and would give rise to inconsistencies in how means tests are applied across schemes.
I recognise the crucial role that carers play in Irish society and will continue to seek to improve the supports for carers. However, any changes must be considered in an overall budgetary context.
