Dáil Éireann Debate, Tuesday - 6 October 2020
507. Deputy Matt Carthy asked the Minister for Social Protection if the costs associated with caring can be deducted from reckonable income for carer’s allowance applicants; and if she will make a statement on the matter. [28237/20]
Amharc ar fhreagraThe Government acknowledges the important role that family carers play and is fully committed to supporting carers in that role. This commitment is recognised in both the Programme for Government and the National Carers’ Strategy.
My Department provides income supports to carers such as Carer’s Allowance, Carer’s Benefit, Domiciliary Care Allowance and the Carer’s Support Grant. Combined spending on all these payments to family carers in 2020 is expected to exceed €1.3 billion.
Carer's Allowance is a means-tested payment for carers who, on a full-time basis, look after certain people in need of full-time care and attention, where the carer's income falls below certain limits. At the end of August 2020, there were 87,733 people in receipt of Carer's Allowance. The estimated expenditure in 2020 is approximately €916 million.
The means test conditionality for Carer's Allowance is consistent with the overall rules that apply to social assistance payments. The system of social assistance supports provides payments based on an income need, with the means test playing the critical role in determining whether or not an income need arises as a consequence of a particular contingency - be that illness, disability, unemployment or caring. The application of a means-test not only ensures that the recipient has an income need but also that scarce resources are targeted to those with the greatest need.
The deduction of further expenses from reckonable income in the means test for Carer's Allowance would effectively increase the current income disregards applied. It should be noted that the means test for Carer's Allowance is the most generous in the social welfare system, especially with regard to earnings disregards. In the case of a single person, €332.50 of gross weekly income is not taken into account (i.e. is disregarded). In the case of a person who is married, in a civil partnership or cohabiting, the first €665 of combined gross weekly income is disregarded. PRSI, travel costs, superannuation and union contributions from the weekly income from employment are deducted before the disregard is applied. This is in line with most social assistance payments. For a couple, the combined gross weekly balance is then halved to give the carer's weekly means.
A couple earning up to €37,500 per year can qualify for the maximum rate while a couple earning €49,750 can, due to the tapered withdrawal approach, retain a payment of just under half-rate. A single person may keep a full-rate payment while having an annual income of just under €19,000, and keep a payment of just under half-rate while having an annual income of €25,400.
The exclusion of other costs, as suggested by the Deputy, in the calculation of income could have significant budgetary implications and would give rise to inconsistencies in how means tests are applied across schemes. It would also significantly increase the complexity of the means assessment process.
Any changes to the means conditions for any of the schemes operated by the Department, including the Carer's Allowance, would need to be addressed in a budgetary context.I hope this clarifies the matter for the Deputy.
