Oireachtas Joint and Select Committees

Wednesday, 16 February 2022

Select Committee on Social Protection

Estimates for Public Services 2022
Vote 37 - Social Protection (Revised)

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

The reason we introduced the enhanced illness benefit was to prevent transmission. We wanted people to stay at home and isolate, rather than go into work. For that reason, we gave them an enhanced payment, which meant they had financial supports while they were not at work. That was the primary reason for bringing in the enhanced illness benefit. In terms of those who are ill beyond ten weeks, the standard illness benefit may be paid for an extended period based on the person's continued eligibility. This is the primary income support payment for people who are unable to attend work due to illness of any type.

It would be very difficult to pluck out Covid and I understand those who are suffering from it, but there are others who have other illnesses that last beyond ten weeks. How can one say that Covid is having more of an impact on them than any other illness they may, unfortunately, get? Some 1% of the enhanced illness benefit claims have reached the ten-week threshold. We have paid out a significant amount on that and it was right and proper that we did so. However, just 1% of the claims have reached the ten-week threshold.

There are numbers there, but to isolate them and treat them differently to other people who have other long-term illnesses would create an inequity. That is the position. Most people who are still recovering from Covid after ten weeks will transfer to the standard illness benefit. If they do not meet the contribution criteria for this payment, they can apply for disability allowance, subject to a means test. Some will not be eligible as the usual qualifying conditions were relaxed due to public health concerns. People with a serious level of ill health where it can be expected to be permanent or to last a long time can apply for invalidity pension, subject to the contribution requirements.

I will move on to the half-rate carer's and fuel allowances. I meet carers all the time, both in my constituency and through the carer organisations. One of my priorities since becoming the Minister for Social Protection is to do whatever I can to support our carers. The Deputy and I know well the huge work they do. In budget 2021, as the Deputy is aware, I increased the carer's support grant to €1,850. It is at its highest level ever. This year, I increased the weekly carer's allowance payment by €5.

Most importantly, I brought in significant changes to the means test. The Cathaoirleach raised that with me on a number of occasions. He made some very valid points and I was delighted to be the first Minister in 14 years to do anything about the means test for carer's allowance. It was something I was very passionate about. That change means that all carers currently on reduced rate of payment will see their payment increase from next June. It will also mean that tens of thousands of carers who did not qualify up to this point, due to the income thresholds, will now qualify for the payment.

The increase in the income disregard for a couple was also raised with me by the Cathaoirleach. I wanted to improve on it because I was aware of many cases where a partner, usually a mother, might have to give her job up to care for a sick child. However, because the husband was working or they had some savings, they did not qualify. As a result of these changes I am making, a couple can earn up to €750 per week and the first €50,000 in savings will not be counted in the means test. The family carers have welcomed that.

The Cathaoirleach asked about the half-rate carer's allowance and the fuel allowance. We are working on a report on those. As soon as we get that finished, we will publish it and lay it before the Houses of the Oireachtas. It is important to note that since 2013, the payment of half-rate carer's allowance does not automatically preclude a person from qualifying for fuel allowance. If a person is in receipt of a qualifying, non-contributory social welfare payment and a half-rate carer's allowance, they are deemed to satisfy the means test and the fuel allowance is payable, subject to all remaining criteria being satisfied.

If a person is in receipt of a qualifying contributory social welfare payment and a half-rate carer's allowance, the value of the half-rate carer's allowance will be assessed in the means test for fuel allowance. Half-rate carer's allowance, which is the same as €131 for anybody aged 66 or over, is paid in addition to many social welfare payments at a rate significantly more than the weekly rate of the fuel allowance, which is payable at €33. However, I am committed to looking at this. A report is being drawn up on it and when I get that report, it will be laid before the Houses of the Oireachtas.

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