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

I thank the Deputy for raising this specific issue which also relates to carers. As the Deputy knows, carer's allowance is a means-tested payment for carers who, on a full-time basis, look after certain people in need of full-time care and attention, where the carer's income falls below certain limits. At the end of August 2020, there were 87,733 people in receipt of carer's allowance and the projected expenditure is approximately €919 million.

The means test for carer's allowance is probably the most generous in the social welfare system, most notably with regard to earnings disregards. The amount of weekly earnings disregarded is €332.50 for a single person and €665 for a couple. A couple earning up to €37,500 per year can qualify for the maximum rate and a couple earning €49,750 can, due to the tapered withdrawal approach, retain a payment of just under half-rate. A single person may keep a full-rate payment while having an annual income of just under €19,000 and keep a payment of just under half-rate while having an annual income of €25,400. The means test conditionality for carer's allowance is consistent with the overall rules that apply to social assistance payments. The system of social assistance supports provides payments based on an income need, with the means test playing the critical role in determining whether or not an income need arises as a consequence of a particular contingency, be that illness, disability, unemployment or caring.

The application of a means-test not only ensures that the recipient has an income need but also that scarce resources are targeted to those with the greatest need. Any changes to the means for carer's allowance would have implications for overall spending and would need to be addressed in a budgetary context.

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