Dáil Éireann Debate, Tuesday - 24 October 2023
51. Deputy Donnchadh Ó Laoghaire asked the Minister for Social Protection her views on the review of means tests for carer's allowance; and whether, in light of increased thresholds in 2024, flexibility can be demonstrated to those being means-tested currently. [46770/23]
Amharc ar fhreagraI had criticisms of some of the elements of budget 2024 but one of the measures I welcomed was the increase in the means test thresholds for carer's allowance. Currently, I believe, however, that there is a large scale means test of people on carer's allowance happening which could lead to people being cut off who might then later qualify. Will the Minister comment on that?
I thank the Deputy for raising this issue. It is important to say that means tests are used to target our resources to best effect in support of those who need them most. The rules for means-testing vary depending on the nature of the payment being claimed. The amount of income that is disregarded for carer's payments is the most generous within the social welfare system. As Minister, I have been concerned not just to protect this position but, in fact, to increase these income disregards:
Last June, the weekly income disregards were increased from €332.50 to €350 for a single person and from €665 to €750 for carers with a spouse and a partner. As part of budget 2024, the weekly income disregard will be increased further from €350 to €450 for a single person, and from €750 to €900 for carers with a spouse or partner.
Furthermore, I introduced the follow additional supports for carers as part of budget 2024: in November, a €400 a lump sum will be paid to people receiving the carer's support grant; in November, a special payment of €100 will be made for each qualified child on a claim, including on carer's claims; a Christmas bonus double payment will be paid to people in receipt of carer's allowance and carer’s benefit; from January 2024, there will be an increase of €12 in the maximum personal rate of weekly carer's payments, with proportionate increases for qualified adults and those on reduced rates, with an additional €4 increase per child; in January 2024, there will be an additional once-off double cost-of-living support payment, which will be paid to qualifying social protection recipients, including carers and people on long-term disability payments; the rate of payment for domiciliary care allowance will increase by €10 from January 2024.
I am satisfied that all of these measures will make a real and measurable difference to people who are caring for loved ones. In particular, raising the general weekly income disregard will mean that more people who are caring will become eligible for carer's allowance. Many carers are also in receipt of supports from other State bodies including, for example, the HSE. That is why I am establishing an interdepartmental working group with the Department of Health to examine and review the wider system of means tests for carers. I trust that clarifies the matter.
This has come to my attention because a number of people have contacted me recently who are being means-tested for their carer's allowance. Naturally, some of them are worried, as they would be when they are being means-tested. Anecdotally, from speaking to a number of these people, they believe this is occurring across the board and that a very large of people are being tested, perhaps more than the ordinary review of means test. Will the Minister confirm or deny that? In any event, in a number of these cases, the individuals in question are probably on the margins of the current threshold. Some of them potentially exceed the threshold due to a change in circumstances but would be under the new thresholds that will come in next June. This could lead to a perverse outcome, whereby somebody's allowance is cut off or reduced in December or January and that person is then brought back into the fold in June. In the past, in areas such as maintenance for single parents, the Minister was able to make changes to how payments operated. Would it be possible for the Department to consider, in cases where people might be disqualified but will fall under the new thresholds being introduced in June, not cutting them off for the intervening period?
As part of the work of social protection, reviews are always carried out. The Department carries out checks on an ongoing basis to ensure resources go to those who need them most.
To respond to the Deputy's question, the revised carer's allowance does not kick in until June 2024. That decision was taken and I will implement it in the social welfare Bill. I do not think I will be in a position to implement it any earlier, to be quite honest. At that stage, when the limits have changed, people can reapply. One of my priorities since I became Minister for Social Protection is to do as much as we can to support our carers because I know very well the huge work they do and the contribution they make to our society. In my first budget in the Department, I increased the carer's support grant to €1,850. In budget 2022, I was the first Minister in 14 years to make changes to the carer's means test. I changed it last year and I am changing it again in this year's budget.
I am not expecting the Minister to make policy on the floor of the Dáil. I ask her to take away my proposal and think about it. There are a category of people who will be cut off and whose allowance will then be restored within a period of six months. I do not believe this is necessary. The Minister may have the power to operate on either side of that by not cutting people off. That type of thing has been done in the past. I ask the Minister to go away to think about that. It is possible to resolve this. The carer's allowance is very important to me too because a large number of carers, despite their sacrifice and efforts, are living in very constrained circumstances. There is a lot of hardship in many instances and many carers are older and thinking about the years to come. Will the Minister provide an update on the carer's pension? The calculation process was due to kick in in January 2024. Is that still the case and will she give us an update on it?
I take the Deputy's point about carers who, on getting a review, are cut off. While I cannot make any promises now, I will look at that. I am ensuring that long-term carers who have spent 20 years or more caring will be able to access the State pension from January 2024. Legislation has to go through the Houses and I am hoping to get it passed very quickly. It will be a big change to the social welfare system. We will provide carers with paid contributions for the time they spent caring and those who missed out will be able to reapply. There are people who currently do not get the carer's pension but who will be able to reapply when I bring in these changes.
When will the Bill be published?
I am working on it now. We have these changes to make on the carer's pension and we will get the Bill through before the end of the year. It will take effect from 1 January 2024.
