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Social Welfare Benefits

Dáil Éireann Debate, Tuesday - 18 May 2021

Tuesday, 18 May 2021

Ceisteanna (554)

Bríd Smith

Ceist:

554. Deputy Bríd Smith asked the Minister for Social Protection her plans to address issues relating to carers and specifically the recommendations made by the Citizens' Assembly; and if she will make a statement on the matter. [26325/21]

Amharc ar fhreagra

Freagraí scríofa

The 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 provided by my Department include Carer's Allowance, Carer's Benefit, Domiciliary Care Allowance, and the Carer's Support Grant. Over 135,000 carers benefit from regular income supports and spending on these payments in 2021 is expected to be in the region of €1.5 billion. The value of income transfers to family carers has increased by over 50% since 2015.

I have noted the recommendations made by the Citizens’ Assembly in relation to carers and, in particular, those pertinent to my Department regarding changes to the Carer’s Allowance means test and the 18.5 hour ceiling, respite and pension provision for family carers.

Carer's Allowance acts as an income support for those who cannot earn adequate income in the open labour market due to their caring responsibilities. 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. 

The two principal conditions for receipt of Carer’s Allowance are that full time care and attention is required and is being provided and that the means test which applies is satisfied.

The means test for Carer's Allowance is one of the most generous in the social welfare system, most notably with regard to spouse’s earnings. The amount of weekly earnings disregarded is €332.50 per week for a single person and €665 per week for a couple. By comparison, the income disregard applied to Disability Allowance is €120 per week. As per Budget 2021 this will increase to €140 per week from June 2021. For Jobseeker's Allowance, it is €20 per day up to a maximum of €60, and the balance is assessed at 60%. For Jobseeker's Transitional Payment, the weekly income disregard is €165 with 50% of the balance assessed as means.

Changes to schemes are considered in an overall budgetary and policy context and from an evidence-based perspective. 

Increases to the disregard would result in the provision of additional payments to people who may have significant sources of income while reducing the scope to provide income supports to lower income households. Those existing carers whose sole income is the Carer’s Allowance would not benefit. An increase in the disregard would benefit just 3% of carers and benefit better-off families.

A primary qualifying condition for the Carer’s Allowance and Carer’s Benefit payments is that the applicant provides full-time care and attention to a person in need of such care. The person being cared for must be so incapacitated as to require full-time care and attention and be likely to require this full-time care and attention for at least 12 months. However, in order to support a carer’s continued attachment to the workforce and broader social inclusion, carers may engage in some limited employment, education or training, while still being regarded as being in a position to provide full-time care.  The maximum period in which a person may engage in employment, education and training is 18.5 hours per week and during this time, adequate provision must be made for the care of the relevant person. 

As part of Budget 2020, the number of hours per week that carers could engage in employment, education or training was increased from 15 to 18.5 hours per week. This measure was prioritised in response to carers and carer representative groups who found the previous number of 15 hours to be too restrictive, not only for work but for education and training purposes. I consider the limit of 18.5 hours to represent a reasonable balance between meeting the care recipient's requirement for full-time care and the carer's need to maintain contact with the workforce. 

The primary responsibility for providing respite care facilities and services rests with the Health Service Executive. In recognition of the vital role that carers provide in our society, I increased the Carer’s Support Grant by €150 as part of Budget 2021, to take effect this June. Spending on the Carer’s Support Grant is estimated to cost over €265 million in 2021. This is a payment for carers throughout the State, not just to people in receipt of Carer’s Allowance, and is available to other carers who may not be dependent on State income supports. The new rate of €1,850 is the highest ever rate at which it will have been paid since its introduction.

In relation to pension provision, the Deputy will be aware that 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 has been asked to submit a report on its work, findings, options and recommendations. I look forward to receiving this report by 30 June 2021. The Government intends to take action having regard to the recommendations of the Commission within six months of its report.  

Currently, 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).

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.

Finally, I can assure the Deputy that 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 improvements or additions to these supports can only be considered in an overall budgetary context and in the light of available financial resources. 

I hope this clarifies the matter for the Deputy.

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