Séamus Brennan (Dublin South, Fianna Fail)

I thank Deputies Penrose, Seán Ryan and Stanton, in whose names are the amendments, for their contribution. I have acknowledged that Deputy Penrose has been a long-time campaigner for the removal of the means test for carers. I squared up to the issue and had a number of sessions with officials, and took much advice. We considered the issue very carefully and, at the end of that process, I decided to introduce different measures.

The package for carers in the budget is €107 million and the cost of abolishing the means test is approximately €140 million. With that kind of money, I could have abolished the means test but I opted instead to do other things which I thought would be more beneficial in the short term. The Deputy is aware of those measures. First, the rate of carer's allowance for those aged 66 or over has been increased in the Bill by €18 from €200 per week to €218 per week. Also, the rate of carer's allowance for those aged under 66 and carer's benefit has increased by €20 from €180 to €200 per week. That will not pay anyone for doing the caring but it is a contribution towards it. That increase will cost almost €32 million. I thought it was necessary to acknowledge the current rate of payment to existing carers.

I also considered an increase was required to the respite care grant, which is currently €1,200. I am told this grant is extraordinarily appreciated. Again, it does not pay a person but it is appreciated as an acknowledgement, which is all it was ever meant to be, and it allows a person to have a break from caring. It has increased from €1,000 to €1,500 in just two years. It is not means tested and is a universal payment. To that extent, it goes some way to meeting the Deputies' request for the removal of the means test. The increase will cost a further €30 million, so the Deputies can understand how the funds build up.

I considered that the weekly income disregard for carer's allowance needed to be improved, so it was increased by €30 to €320 per week for a single person and by €60 to €640 per week for a couple. This will take effect in April, and will have a full year cost of a further €6 million. I considered that increasing the earnings threshold for entitlement to carer's benefit should also be improved, so we increased it to €320 per week.

I then had to make a substantial choice. Taking account of the committee's recommendations, I had either to adopt the half rate proposal or choose a more dramatic abolition of the means test. It would have been much easier for me to abolish the means test, and much easier to explain, as the method I chose is more complicated. The cost of introducing a new, additional means tested payment equivalent to up to half of the carer's allowance rate for certain people with another social welfare entitlement comes to almost €57 million. If I were to remove the means test, I could not have introduced the new payment because to remove the means test would almost certainly eat up the required funds. I considered the introduction of this measure more urgent for those involved, if less politically dramatic for myself.

We have squared up to this issue and have been able to abolish the welfare rule that one cannot get two payments. This means that anybody on a welfare payment — we have yet to work out many details and I will listen carefully to what colleagues have said, as will my officials, because some of the details are difficult——

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