Dáil Éireann Debate, Wednesday - 16 June 2021
176. Deputy Gary Gannon asked the Minister for Social Protection the estimated cost of increasing the income disregard for carer's allowance from €332.50 to €350 per week for a single person and to €700 for a couple; and if she will make a statement on the matter. [32489/21]
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.
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. Combined spending on these payments to carers in 2021 is expected to exceed €1.4 billion.
As of May, there were 89,523 recipients of Carer's Allowance. The estimated expenditure for the payment in 2021 is in the region of €953 million.
The means test for Carer’s Allowance is one of the most generous in the social protection system. Currently, €332.50 of gross weekly income is disregarded in the calculation of means for a single person; the equivalent for someone who is married, in a civil partnership or cohabiting is €665 of combined gross weekly income.
By comparison, the income disregard applied to Disability Allowance is €140 per week. 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.
The ESRI SWITCH microsimulation model is used for the purposes of estimates such as the one requested. The estimated gross expenditure is an additional €1.16m annually. However, it should be noted that is not possible to estimate the increase in the number of persons entitled to the Carer’s Allowance if the means test thresholds were increased. This is primarily because it is not known how many people there are caring and working that are currently over the income limit but who could apply for/become eligible for Carer's Allowance if the income limits were higher. SWITCH cannot model behavioural responses in such cases.
SWITCH showed no distribution/poverty affects arising from the increase suggested by the Deputy. It is important to note that based on the Department's own analysis of the Carer's Allowance, 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.
Any changes to the means test must be considered in an overall budgetary context.
I hope this clarifies the position for the Deputy.
