Dáil Éireann Debate, Thursday - 17 September 2020
134. Deputy Dara Calleary asked the Minister for Social Protection her plans to address the means test for carer’s allowance; if she considers it a fair assessment; and if she will make a statement on the matter. [24480/20]
Amharc ar fhreagra135. Deputy Dara Calleary asked the Minister for Social Protection her plans to address the income disregard for carer’s allowance; if consideration has been given to the consequences of the measure for working families; and if she will make a statement on the matter. [24481/20]
Amharc ar fhreagraI propose to take Questions Nos. 134 and 135 together.
The main income supports for carers provided by my Department are Carer’s Allowance, Carer’s Benefit, Domiciliary Care Allowance and the Carer’s Support Grant. The projected expenditure on Carer’s Allowance in 2020 is approximately €919 million. Combined spending on all these payments to carers in 2020 is expected to exceed €1.3 billion.
Carer's Allowance is a means tested payment made to people whose income falls below certain limits, and who are looking after certain people in need of full-time care and attention.
The system of social assistance supports provides payments based on an income need. The means test plays a critical role in determining whether or not an income need arises as a consequence of a particular contingency – such as disability, unemployment or caring. This ensures that the recipient has a verifiable income need and that resources are targeted to those who need them most.
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 the least onerous within the social protection system.
A couple earning a joint annual income of up to €37,500 (net of PRSI and other allowable deductions) can qualify for maximum payment and, given the tapered withdrawal approach, retain a payment of just under half-rate while earning €49,750. A single person may retain a full-rate payment while having an annual income of just under €19,000, and retain a payment of just under half-rate while having an annual income of €25,400.
Changes to schemes are considered in an overall budgetary and policy context and from an evidence based perspective. Some 92% of the current recipients of Carer’s Allowance have no means or means of less than €7.60 per week and would not benefit by an increase in the disregard. Carers who would benefit from an increased disregard would be in higher income households.
I am very much aware of the key role that family carers play in our society and I will continue to keep the range of supports available to carers under review; however, any changes to scheme criteria would have implications for overall spending and would have to be considered in a budgetary context.
