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Social Welfare Eligibility

Dáil Éireann Debate, Tuesday - 17 May 2022

Tuesday, 17 May 2022

Ceisteanna (514)

Pauline Tully

Ceist:

514. Deputy Pauline Tully asked the Minister for Social Protection if she will commit to a review of the income disregard in the means test for both the carer's allowance and the disability allowance; and if she will make a statement on the matter. [24697/22]

Amharc ar fhreagra

Freagraí scríofa

In 2022 spending on Illness, Disability and Carers will be an estimated €4.9 billion. This represents 21.1% of my Department’s total expenditure for the year. Since 2015 there has been a significant increase in the number of people supported under these schemes:-

- The number of people claiming Carer’s Allowance and Carer’s Benefit has increased by 42% and the cost of the schemes has increased by 52%.

- The number of people claiming Disability Allowance has increased by 28% and the cost of the scheme has increased by 41%.

As of March there were 90,859 recipients of Carer's Allowance and the estimated expenditure on Carer's Allowance in 2022 is approximately €990 million.

As of March there were 155,542 recipients of Disability Allowance and the estimated expenditure on Disability Allowance in 2022 is almost €1.9 billion.

Both the Carer’s Allowance and Disability Allowance payments are 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 unemployment, disability or caring. This ensures that the recipient has a verifiable income need and that resources are targeted to those who need them most.

Since my appointment as Minister for Social Protection, supporting carers and people with disabilities has been a key priority for me. In this context I have already reviewed and analysed the disregards in relation to both schemes.

In this year’s Budget, I made significant changes to the Carer’s Allowance means test.

- The capital/savings disregard for the Carer’s Allowance means assessment is being increased from €20,000 to €50,000, aligning it with that which applies for Disability Allowance.

- For carers who work, I have increased the weekly income disregard from €332.50 to €350 for a single person, and from €665 to €750 for carers with a spouse/partner.

These are the first changes that have been made to the Carer’s Allowance means test in 14 years.

With regard to the Disability Allowance disregard the following changes have been made

- An increase to the general weekly means disregard entry point for Disability Allowance from €2.50 to €7.60. The effect of this measure will be to increase the weekly rate of payment by up to €5.10 per week for Disability Allowance recipients who have means.

- An increase in the earnings threshold above which means is fully assessed - by €25 from €350 to €375 per week for Disability Allowance.

This builds on the Budget 2021 measure where I increased the disregard from €120 to €140. Prior to this there had been no changes to the Disability Allowance disregard since 2006.

I will continue to keep the range of supports available to carers and people with disabilities 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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