Mary Hanafin (Dún Laoghaire, Fianna Fail)

Budget 2007 provided for new arrangements whereby people in receipt of a social welfare payment other than carers allowance or benefit who are also providing someone with full-time care and attention can retain their main welfare payments and receive a half-rate carers allowance. Similarly, people currently in receipt of a carers allowance who may have an underlying eligibility for another social welfare payment can transfer to that other payment and continue to receive up to a half-rate carers allowance.

The report of the special group on public service numbers and expenditure programmes made a range of recommendations relating to the Department of Social and Family Affairs, including on the half-rate carers allowance. The Department will consider the report's recommendations as part of the Estimates and budgetary process for 2010. Decisions on all the issues arising will be a matter for the Government. No decisions have been made on the implementation of any of the McCarthy proposals relevant to this Department. Full consideration will of course be given to the impact of the proposals on the recipients involved.

The Government is acutely aware and appreciative of the contribution made by carers to people needing ongoing care and support. In recognition of this, considerable improvements have been made in recent years in services and supports for carers. The payment rates for the carers allowance were increased further in the 2009 Budget by €7 to €239 per week for those aged 66 or over and by €6.50 to €220.50 per week for those aged under 66. Recipients of carers allowance are also eligible for household benefits, free travel and the respite care grant.

The means test for carers allowance has been significantly eased over the years and is now one of the most generous means tests in the social welfare system, most notably with regard to spousal earnings. Since April 2008, the income disregard has been €332.50 per week for a single person and €665 per week for a couple. This means that a couple with two children can earn in the region of €37,200 and qualify for the maximum rate of carers allowance as well as the associated free travel and household benefits package. A couple with an income in the region of €60,400 can still qualify for a minimum payment, as well as free travel and household benefits. These levels surpass the Towards 2016 commitment to ensuring those on average industrial earnings continue to qualify for a full carer's allowance.

From June 2005 the annual respite care grant was extended to all carers who are providing full-time care to a person who needs such care regardless of their income. The rate of the respite care grant was also increased to €1,700 per year in respect of each care recipient from June 2008.

It is estimated that the combined expenditure on carers allowance, carers benefit, the respite care grant and half-rate carers allowance will be €650 million in 2009. It would not be appropriate for me to comment further on budgetary proposals at this stage pending the outcome of these deliberative processes.

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