Jennifer Carroll MacNeill (Dún Laoghaire, Fine Gael) | Oireachtas source

I will speak about two matters, the overall macroeconomic situation and the carer's allowance. I greatly welcome the budget at this time. I see it as a stability and transition budget away from the €48 billion we have had to spend to support the economy, individuals and businesses through the Covid pandemic into a period, now, of a real economic recovery and stability for our people and communities and in our public finances. All those are inextricably linked.

We hope the inflationary pressures we are experiencing at present will be transitory. They peaked this September, in particular as a response to price increases in August and to accommodation pressures, cars and aeroplane tickets as people emerge from the Covid period and try to get out and about. We hope it will stabilise next year at approximately 2.2%. However, consumer demand is very strong, and that is a very positive sign as we move forward because those things support employment. The one thing I urge caution on is continued discussion about tax on employment, as I noted was done by Opposition Members. The most important thing for any household is a job. A job provides dignity, income and support within the community. It is the basis of our economy. Taxing jobs or threats to jobs is a dangerous precedent. I remember the dark days from 2008 to 2010 when unemployment was at a high of 15%, and the effect that had on communities and everything in them. We must be very careful to support employment through this transition period.

One thing I am very pleased about on the social side is the major reform of the carer's allowance. I thank the Minister, Deputy Humphreys, in particular, for that. The work she has done will bring in more working families who are caring for people in their families but who had previously been excluded from the carer's allowance. Changing the capital disregard from €20,000 to €50,000 is a major change, as is changing the weekly income limits at the same time. That is a massive change that will bring thousands of family carers into the carer's allowance structure and support. It is very important because carers within families are providing great support to their loved ones, and also on behalf of the State. It is completely appropriate. I hope we will get to a point where, over time, the means test can be removed entirely and we can look at care needs and what is needed to support people in their homes. However, this is a very major reform and I am glad to see it.

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