Dáil debates

Thursday, 1 May 2025

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Care Services

7:00 am

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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85. To ask the Minister for Employment Affairs and Social Protection for an update on the commitment in the programme for Government to increase the income disregards for carer’s allowance in each budget, with a view to phasing out the means test during the lifetime of the Government; and if he will make a statement on the matter. [22000/25]

Photo of Paul MurphyPaul Murphy (Dublin South West, Solidarity)
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During the general election campaign, Fianna Fáil and Fine Gael promised to abolish the means test for the carer's allowance. The programme for Government contains a commitment to phasing out the means test during the lifetime of the Government. Will the Minister tell us in which budget the means test will be abolished?

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I had this question down on behalf of Deputy O'Gorman but I thank Deputy Murphy for the question. The carer's allowance is the main scheme by which my Department provides income support to carers. There are currently 99,256 people in receipt of carer's allowance. Expenditure in 2025 is estimated at more than €1.24 billion. In common with other social welfare payments, the primary objective of the carer's allowance payment is to provide an income support to people experiencing a contingency that significantly limits their ability to earn an income through employment.

Carer's allowance is means tested under current social welfare legislation,. Within the social welfare system, means tests are used as a means of targeting income transfers to those most in need, in a progressive and equitable manner. However, it is also important that income limits used in means tests are calibrated to reflect the ability of recipients to earn income from other sources and, in so doing, reduce their dependence on a welfare payment. In this respect, the income disregards for carers are already the most generous in the social welfare system and are being further improved. This July, the weekly income disregard will increase from €450 to €625 for a single person, and from €900 to €1,250 for carers with a spouse or partner. This means that a carer in a two-adult household with an income of approximately €69,000 will still retain their full carer's payment and even with an income of €97,000 will retain a partial payment. As the Deputy said, the programme for Government commits to continue this process and to significantly increase the income disregards for carer's allowance in each budget, during the lifetime of the Government, with an aim to ultimately phase out the means test during the lifetime of the Government.

I will work with my colleague the Minister for Public Expenditure, National Development Plan Delivery and Reform to give effect to this commitment over a number of budgets. Other supports for carers are also provided by the Department that are not based on a means assessment. These include the carer’s support grant, carer’s benefit and the domiciliary care allowance.

Photo of Paul MurphyPaul Murphy (Dublin South West, Solidarity)
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It was interesting that the Minister used slightly different language in his answer from what is contained in the written replies to parliamentary questions. In written replies the Minister states that the programme for Government has set out a timeline that commits to significantly further increasing the income disregards. He left out, quite understandably, the point about having a timeline because, presumably, he knows that the programme for Government does not contain such a timeline. All it sets out is a general commitment to a view to phasing out the means test. I presume the Minister is not in a position to give me a timeline. While the increase in the income disregard is welcome, it is not sufficient. A means test is not something that can be gradually abolished. Either we have a means test and all of the pressure that puts on people or we do not. It is not only about the income; it is also about the fact of the means test being a demeaning process that people go through. They have to fill out a large form, along with a medical report to justify the work they are doing, which is saving the State approximately €20 billion a year.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I thank the Deputy. I meant to clarify in reply to Deputy O'Reilly earlier that we are conducting a review of the means test process across all schemes in the Department. Means tests are important but they are how the process is implemented. I look forward to hearing people's views on that. We will engage with the Minister for public expenditure on this issue. He is aware of the commitment in the programme for Government. If we look at the changes that have been made in recent years to the income disregard, they show a direction of travel that we intend to continue. The commitment is there in the programme for Government. It is based on me having the resources to do that and I am determined to fight for those resources on an annual basis during the term of this Government.

Photo of Paul MurphyPaul Murphy (Dublin South West, Solidarity)
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I worry that this is one of those promises made during the general election campaign that is then watered down in the programme for Government and that will end up falling by the wayside. In the past few weeks, a number of commitments made by the Government have been abandoned under the guise of the Trump tariffs, by saying that now is not the time for extending. I worry that that is where we are going to end up. The Minister may not have the figures in front of him, but of the almost 100,000 carers, I wager that a significant majority of those are women. There is no getting away from the fundamentally gendered nature in our current society of this work and that is linked to the undervaluing of this work by the State. The refusal to provide a clear timeline with dates to abolish the means test is fundamentally a sexist policy of the Government that places women in a position of continued dependency on their male partners. Economic independence is vital for gender equality, especially at a time when finding affordable housing is the main impediment to women leaving abusive relationships. That is another reason we should abolish the means test.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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The commitment has to be looked at in light of the improvements that have been made in recent years, which I am determined to continue. In the context of the Deputy's final remarks, the long-term carer's contribution scheme was introduced in January 2024. Under this scheme, a person who has been a full-time carer - and yes, the Deputy is right that they are predominantly women - for an incapacitated dependant for at least 20 years, now get long-term carer's contributions that will cover gaps in their contribution record and help them to qualify for a contributory State pension. As part of budget 2025, the carer's support grant was increased by €150 to €2,000. That is the highest rate ever for this grant. As we have also reflected, the carer's allowance weekly income disregard will increase in July from €450 to €625 for a single person and from €900 to €1,250 for a couple. Since June 2022, there has been a cumulative increase of €292.50 for a single carer and €585 for a carer who is part of a couple. We increased the capital disregard in June 2022 so a carer with a spouse or partner can now have capital of up to €100,000. The trajectory of the commitment in the programme for Government is backed up by the changes that have been made over the past number of years. Those kinds of changes and level of commitment to carers will continue.

Question No. 86 taken with Written Answers.