Dáil Éireann Debate, Thursday - 3 December 2020
68. Deputy Matt Carthy asked the Minister for Social Protection her plans to increase supports to family carers including amending eligibility criteria, increasing payment rates and providing pension entitlements. [39985/20]
Amharc ar fhreagraThe Government acknowledges the crucial 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. The main income supports to 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 the primary income support provided by my Department to carers. It 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. This allowance is part of the system of social assistance supports that provide 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. Carers may also (subject to certain conditions) qualify for the:
- Household Benefits Package
- Free Travel Scheme
Notwithstanding the substantial extra financial demands due to the COVID-19 crisis, I announced, on 4 June, that the Carer’s Support Grant would continue to be paid to carers this year at an estimated cost of over €237 million. The annual grant of €1,700 is made to carers providing full-time care to an older person or a person with a disability regardless of their means or social insurance contributions and is not taxable. The objective of the Carer’s Support Grant is to support carers in their caring role and carers may use the grant in a manner that is appropriate to their needs. The grant is paid in respect of each person being cared for to take account of the additional cost of providing care and to recognise the particular challenges faced by these carers. At the end of October 115,845 carers had received the grant in respect of 128,610 care recipients. As part of Budget 2021 I have increased the rate of the grant by €150 to €1,850. The new rate will be €1,850 – the highest ever rate at which it will have been paid since its introduction. The Supplementary Welfare Allowance (SWA) scheme provides a "safety net" within the overall social welfare system and provides assistance to eligible people in the State whose means are insufficient to meet their needs and those of their dependants. SWA provides immediate and flexible assistance for those in need who do not qualify for payment under other schemes. As you are aware, the Government has approved the establishment of a Commission on Pensions. The Commission’s Terms of Reference includes consideration of how people who have provided long-term care for incapacitated dependents can be accommodated within the State pension system. The Commission will report to the Minister for Social Protection on its work, findings, options and recommendations by 30th June 2021. The Government intends to take action having regard to the recommendations of the Commission within six months of its report. In relation to the current position, the State pension system gives significant recognition to those whose work history includes an extended period of time outside the paid workplace, often to raise families or in a full-time caring role, through the award of credits and either the Homemaker’s Scheme (as part of the Yearly Average rate calculation method) or HomeCaring Periods (as part of the Interim TCA rate calculation method).
- Credits – PRSI Credits are awarded to recipients of Carer’s Allowance (and Carer’s Benefit) where they have an underlying entitlement to credits. Credits are also awarded to workers who take unpaid Carer’s Leave from work.
- Homemaker’s Scheme - The scheme, which was introduced with effect from 1994, is designed to help homemakers and carers qualify for the State Pension (Contributory). The Scheme, which allows periods caring for children or people with a caring need to be disregarded (from 1994), can have the effect of increasing the Yearly Average.
- HomeCaring Periods – This Scheme makes it easier for a home carer to qualify for a higher rate of State Pension (Contributory). HomeCaring Periods may be awarded for each week not already covered by a paid or credited social insurance contribution. HomeCaring Periods can only be used under the Interim TCA of pension calculation.
The Homemaker's Scheme and HomeCaring Periods cannot be used together to calculate State Pension (Contribution) entitlement. Furthermore those with few or no PRSI contributions paid over the years may alternatively qualify for the State Pension (Non-Contributory), which is a means-tested pension, financed by the Exchequer, and paid at up to 95% of the maximum rate of the State Pension (Contributory). The most advantageous payment for a pensioner will depend upon their individual circumstances. I can assure the Deputy that I am very aware of the commitment of family carers and the key role they play in society and I am very conscious of the particular challenges facing our family carers at this time. I will continue to keep the range of supports provided by my Department under review to ensure that the overall objectives of the carer income supports provided are met. While I will seek to improve the supports available for carers, any changes to the eligibility criteria to would have significant cost implications and must be considered in an overall budgetary context. I hope this clarifies the position for the Deputy.
Questions Nos. 70 and 71 answered with Question No. 55.
