Séamus Brennan (Dublin South, Fianna Fail)

Carer's allowance is a social assistance payment paid to people who are providing full-time care and attention to a person in need of such care. In line with other social assistance schemes, a means test is applied to the carer's allowance so as to ensure resources are directed to those in greatest need. This means test has been eased significantly over the years. Following budget 2006, the earnings disregard for a couple was set at €580 per week, which is equivalent to gross average industrial earnings. In budget 2007, I increased this to €640 per week for a couple from April 2007.

This increase means a couple with two children will be able to earn in the region of €36,000 per year and still qualify for the maximum rate of carer's allowance as well as the associated free travel and household benefits. This measure exceeds the commitment in Towards 2016 to ensure those on average industrial earnings can continue to qualify for a full carer's allowance.

In addition, I have increased the rates of carer's allowance to €200 per week for those aged under 66 and to €218 per week for those aged over 66. From June 2005, the annual respite care grant was extended to all carers who are providing full-time care to a person in need of such care, regardless of their income. Those persons in receipt of other social welfare payments, excluding jobseeker's assistance and benefit, are entitled to this payment, subject to meeting the full-time care condition. From June 2007, the level of the grant will increase by €300 to €1,500 per year.

It is estimated that complete abolition of the means test for carer's allowance would cost over €140 million in a full year. There are differing views on this, with some support organisations strongly of the view that if this level of resources were available, it would be more beneficial to carers if it were invested in further increases to carer's allowance and in the type of community care services which would support them in their caring role.

The primary objective of the social welfare system is to provide income support. As a general rule, only one weekly social welfare payment is payable to an individual. Persons qualifying for two social welfare payments receive the higher payment to which they are entitled. I am aware this has been a cause of particular concern to people in receipt of a social welfare payment when they become carers.

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For that reason I was very pleased to introduce fundamental structural reforms in this area in budget 2007 under which people in receipt of certain social welfare payments, for example a widow's pension, who are providing someone with full-time care and attention will be able to retain their main payment and receive an additional payment, depending on their means, of up to a half rate carer's allowance. I have provided for these new arrangements in the Social Welfare and Pensions Bill, which is currently before the Oireachtas.

I again reiterate my commitment to working for and with carers to deliver increased benefits, supports and services for them and their families.

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