Séamus Healy (Tipperary South, Independent)
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86. To ask the Minister for Employment Affairs and Social Protection the detail of how and when he intends to implement the Programme for Government commitment to abolish the income limit for the carer’s allowance; and if he will make a statement on the matter. [8927/25]

Séamus Healy (Tipperary South, Independent)
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I congratulate the Minister on his appointment and wish him well in the Department.

Both Government parties in their election manifestos committed to the abolition of the means test for the carer’s allowance. The public believed when those parties formed a Government that the means test would be abolished, if not immediately then certainly in the 2026 budget in October. There seems to be no clarity about that now and I ask for clarity on that today.

Dara Calleary (Mayo, Fianna Fail)
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I thank the Deputy and congratulate him and welcome him back to the House.

Carer’s allowance is an important income support for people who have caring responsibilities. That is clear from the fact that there are nearly 99,000 people in receipt of the payment and expenditure on the scheme in 2025 is estimated to be over €1.24 billion.

In common with other welfare payments to people aged under 66 years the purpose of the payment is to provide an income support to people whose earning capacity is substantially reduced. In the case of other payments that may be because the person is ill or disabled or becomes unemployed. In the case of carer's allowance, it is to acknowledge the person cannot work full-time due to their caring duties and responsibilities.

A number of significant improvements have been made to the income thresholds in the means test in recent years. Those thresholds, as I said to Deputy O’Reilly, have increased by 88% since 2022 and now amount to €625 for a single person and €1,250 for a couple. That means that a couple earning over €95,000 per annum would still qualify for a partial payment.

Recognising the important work of family carers, the programme for Government commits to continue to increase the income disregards for carer's allowance in each budget with a view to phasing out the means test completely during the lifetime of this Government. The work that has been done with an increase of over 88% since 2022 gives a good indication of where we intend to go on that.

The reason we must phase that commitment is because we must manage the available resources to balance the objective of supporting carers with other priorities, including supporting other groups who are supported by the Department. The means test has significant cost potential but I have to balance that with other priorities.

Nevertheless, I assure the Deputy and the House that carers are a priority. I very much value and appreciate the work they do, and this is a priority for the Government and for me, as Minister.

Séamus Healy (Tipperary South, Independent)
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I thank the Minister for the reply, but we still have no clarity on when this means test will be abolished. As I said, the public believed the means test was going to be abolished either immediately on the formation of the Government or, at the very least, in budget 2026 in October of this year. From what the Minister said, there is absolutely no clarity on that. I acknowledge there have been increases in the limits over the years, which are welcome, but the commitment is to abolish the means test and that should and must be done, sooner rather than later, on the basis of the commitments given both in the election manifestos and in the programme for Government. Carers save the State €20 billion a year and give 19 million hours for free every week. They do exceptionally good work and save the State billions of euro. It is incumbent on the Government to abolish the test immediately.

Dara Calleary (Mayo, Fianna Fail)
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I absolutely acknowledge the work of carers, which we see at first hand, and that is why it is also important we acknowledge the extent of the improvements the previous Government brought in for carers over recent years. We introduced the long-term carer's contribution scheme in January 2024, which allows a person who has been a full-time carer for an incapacitated dependant for 20 years or more to use long-term carer's contributions to cover gaps in their contribution records, allowing them to qualify for a contributory State pension. As stated previously, we have also increased the income disregard and, as part of budget 2025, the carer's support was increased to €2,000, the highest rate it has ever been. Moreover, with the support of carers and following engagement with them and their representative organisations, the capital disregard was increased from June 2022, which allows carers to have capital of up to €100,000.

I intend to engage with carers' groups and organisations regarding further supports and to engage with the Oireachtas committee on social protection in this space. I assure the Deputy this is a priority for me.

Séamus Healy (Tipperary South, Independent)
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In 2024, the Parliamentary Budget Office estimated the cost of abolishing the means test as €375.3 million, which is very similar to the figure Family Carers Ireland gave, of about €389 million. That is very small money in the scheme of things. The work of family carers ensures that people with disabilities can remain at home and do not have to take up expensive beds in hospitals or nursing homes. It is self-financing and there would be huge savings to the State from abolishing the means test. Doing so is necessary and urgent and will accrue great savings to the State.

Dara Calleary (Mayo, Fianna Fail)
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Absolutely. Carers' work is extraordinary and there is also the benefit of having somebody remain at home. Leaving aside the financial sides of things, having somebody remain at home is much better for their long-term recovery and long-term living. In the context of budgetary discussions, we will review all the figures. I will engage with the carers' organisations but also with the committee on social protection, when it is established, and we will look at all those issues. I absolutely assure the Deputy, and all Deputies, that carers are a priority for me, and I will have very good and constructive engagement with them. It is a priority within the programme for Government that I intend to be focused on delivering.