Dáil Éireann Debate, Tuesday - 25 July 2023
692. Deputy Michael Creed asked the Minister for Social Protection if she will confirm that household expenses, including mortgage repayments, household insurance and so on, are allowable expenses in the means test applied for the carer’s allowance review; and if she will make a statement on the matter. [36077/23]
Amharc ar fhreagraThe system of social assistance supports provides 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.
Last year, the general weekly income disregard for Carer's Allowance increased from €332.50 to €350 for a single person, and from €665 to €750 for a couple. This enables more carers with modest incomes to become eligible for the scheme, and those in receipt of a reduced payment may now receive a higher payment.
The capital disregard for Carer’s Allowance was also increased from €20,000 to €50,000. This will allow carers who have accumulated savings, often to provide care for a loved one, to retain an entitlement to Carer's Allowance.
By its nature, the means test takes account of the income a person or couple has in terms of cash, property - other than the family home - and capital. It does not take account of a person’s expenditure.
Introducing a disregard for household expenses in the means test for Carer's Allowance would have significant budgetary implications and would give rise to inconsistencies in how means tests are applied across schemes. It would also significantly increase the complexity of the means assessment. Any changes in this regard would have to be considered in the overall policy context.
I trust this clarifies the matter for the Deputy.
