Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Disability allowance (DA) is a means-tested payment for people with a specified disability who are aged 16 or over and under the age of 66. The applicant must be suffering from an injury, disease, congenital deformity or physical or mental illness or defect which has lasted for one year or is expected to last for one year and, as a result of which, they are substantially restricted in undertaking work which would otherwise be suitable having regard to the person’s age, experience and qualifications. The person must also satisfy a means test and be habitually resident in the State.

Recognising that all work is rehabilitative, the DA scheme is structured to encourage recipients to avail of opportunities to engage in either insurable employment or self-employment. When an individual engages in work, they can avail of an income disregard of 100% of the first €165 earned per week. 50% of earnings between €165 and €375 are also disregarded for the purpose of the means test. Any amounts over €375 are assessed in full. This disregard is available to all DA recipients who engage in employment and there are no restrictions on the hours worked each week.

Carer's allowance (CA) is a means-tested social assistance payment made to a person who is habitually resident in the State and who is providing full-time care and attention to a child or an adult who has such a disability that as a result they require that level of care.

A person can be considered to be providing full-time care and attention where they are engaged in employment, self-employment or on training courses for a maximum of 18.5 hours per week, provided that they can show to the satisfaction of a deciding officer that adequate care has been provided for the care recipient in their absence.

The means test for CA has been significantly eased over the years and is now one of the most generous means tests in the Social Welfare system. The income disregard is €350 per week for a single person and €750 per week for a couple.

The carer's means is calculated as Gross weekly income less disregards & deductions. Deductions include PRSI, union dues, superannuation (pension contributions) and travel expenses. For a couple, their combined gross weekly income (less any disregards/deductions) is then halved to give the carer's weekly means.

From June 2024, in line with Budget measures the weekly income disregard will be further increased from €350 to €450 for a single person, and from €750 to €900 for carers with a spouse/partner.

I trust this clarifies the matter for the Deputy.