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Social Welfare Rates

Dáil Éireann Debate, Wednesday - 23 June 2021

Wednesday, 23 June 2021

Ceisteanna (170)

Claire Kerrane

Ceist:

170. Deputy Claire Kerrane asked the Minister for Social Protection the estimated full year cost of including carer's allowance as a qualifying payment for fuel allowance. [33648/21]

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Freagraí scríofa

The Fuel Allowance is a household based payment of €28.00 per week for 28 weeks (a total of €784 each year), paid from October to April, to 370,000 low income households, at an estimated cost of €300 million in 2021.  The purpose of this payment is to assist these households with their energy costs.  The allowance represents a contribution towards the energy costs of a household.  It is not intended to meet those costs in full.  Only one allowance is paid per household.

My Department also pays an electricity or gas allowance under the Household Benefits scheme at an estimated cost of €195 million in 2021.  This is paid at a rate of €35 per month, 12 months of the year. 

Taking account of the fact that the fuel allowance is a household based payment and that qualification is not just based on receipt of a qualifying payment but on a number of other complex qualifying criteria such as household composition, it is not possible for my Department to provide an accurate projection of the potential cost of including carer's allowance as a qualifying payment for the allowance.

The Government values the role of carers very much and it is for this reason that they receive significant income supports from the Department.  In addition to the Carer’s Benefit and Carer's Allowance schemes, carers receive further support in the form of free travel and household benefits (for those who live with the person for whom they care) and the annual Carer's Support Grant in respect of each person for whom they care.  In Budget 2021 I was delighted to announce an increase to the Carer's Support Grant by €150 to €1,850.  This will benefit over 130,000 carers.  Carers in receipt of an increase for a qualified child on their claim also benefit from the Budget 2021 increase to the qualified child rate, by €5 in the case of a child aged 12 or over and by €2 for a child aged up to 12.

Fuel Allowance is a household-based payment, and a Carer will very often live with and be caring for a person in receipt of a qualifying payment for Fuel Allowance.  Income from full rate Carer's Allowance is disregarded from the fuel means test if the carer is providing full time care and attention to the Fuel Allowance applicant, his/her qualified spouse / civil partner or cohabitant or qualified child(ren).

If a person is getting certain qualifying social welfare payments and also providing full time care and attention to another person, s/he can keep his/her main social protection payment in addition to receiving the half-rate Carer's Allowance.  S/he can also receive an extra half-rate Carer’s Allowance if s/he cares for more than one person.  It should also be noted that the payment of half-rate Carer’s Allowance does not preclude a person from qualifying for Fuel Allowance.  If a person is in receipt of a non-contributory social welfare payment and a half-rate Carer’s Allowance, then s/he is deemed to have satisfied the means test and Fuel Allowance is payable, subject to all remaining criteria being satisfied.  If a person is in receipt of a contributory social welfare payment and a half-rate Carer’s Allowance then s/he will have to satisfy a means test in order to qualify for Fuel Allowance.

The maximum rates of Carer's Allowance for those aged under 66, at €219 (€257 for carers aged 66 or over) where one person is being cared for, and €328.50 (€385.50 for carers aged 66 or over) where there are two or more carees, is significantly higher than that for most schemes administered by my Department. 

The means test for Carer's allowance has been significantly eased over the years and is now one of the most generous means tests in the social welfare system, most notably with regard to spouse’s earnings.  At present the means test for Carer’s Allowance allows for an income disregard of €332.50 per week for a single person and €665 for a couple.  In the case of a single carer, that person may retain a full-rate payment of €219.00 while having an annual income of just under €19,000, or retain a payment of €109.00 per week (just under half rate) while having an annual income of €25,400, or retain the minimum payment of €4 per week while having an annual income of €31,100.

Carers can also engage in employment, self-employment, training or education courses outside the home for not more than 18.5 hours a week.

Any proposal to amend the criteria for receiving Fuel Allowance, to include Carer’s Allowance as a qualifying payment, would have to be considered in the overall policy and budgetary context. 

I hope this clarifies the matter for the Deputy.

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