Catherine Ardagh (Dublin South Central, Fianna Fail)
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90. To ask the Minister for Employment Affairs and Social Protection for an update on plans to abolish the means test for the carer’s allowance, given the strong support for this in the programme for Government; to confirm if it will be included in budget 2026; and if he will make a statement on the matter. [32829/25]

Catherine Ardagh (Dublin South Central, Fianna Fail)
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I know the ground on carer’s allowance has been covered a lot, but the programme for Government contains a commitment to the abolition of the means test for carer's allowance during the Government's term. Will the Minister provide an update on where this now stands, on the work has been done on the costings or preparations and on whether we can expect progress or a first step in budget 2026?

Dara Calleary (Mayo, Fianna Fail)
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The carer's allowance is the main scheme by means of which my Department provides income supports to carers in every community. As the Deputy will be aware, more than 100,000 people are in receipt of carer's allowance. Expenditure on the scheme in the current year is estimated to be more than €1.24 billion. Carer’s allowance provides an income support to people whose earning capacity is substantially reduced because they cannot work full time due to their caring responsibilities. It is means tested to target the support to those most in need.

In the programme for Government, we set out an ambition to significantly increase the income disregards for carer’s allowance with a view to phasing out the means test entirely during the lifetime of this Government. A number of significant changes have been made to the carer’s allowance means test in recent years. From 3 July, there will be further increases that will see the weekly income disregards rise from €450 to €625 for a single person and from €900 to €1,250 for carers with a spouse or partner. This amounts to cumulative increases to the disregards of €292.50 and €585 weekly since June 2022. From July, carers in a two-adult household with an income of approximately €69,000 will still retain their full carer's payment. Even with an income of €97,000, they will retain a partial payment. These increases have made the scheme accessible to many more people and may increase payment rates for those currently on a reduced rate.

It is important that we make progress in a way that is sustainable and that balances the allocation of available budgetary resources. That is why we have committed to a measured and phased approach over a number of budgets. We are beginning our work on budget 2026 in the Department, and this will be a priority I intend to achieve over the lifetime of the Government.

Catherine Ardagh (Dublin South Central, Fianna Fail)
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As the Minister stated, more than 100,000 people are in receipt of carer's allowance. There are 500,000 carers, however, which means that 400,000 people are not getting benefits under the scheme. Will the Minister increase the disregard in the forthcoming budget? The means test hits families who are doing their best, often one-parent families or where a parent is working part time and might have some savings. It is outdated and creates huge hardship, especially for women, This is because the majority of carers are women. The current system penalises those who are trying to save for their future or manage their finances responsibly. It penalises prudence. This is not only a financial issue; it is also a matter of fairness and equality.

The Minister mentioned cost concerns previously with estimates ranging from €600 million to €3 billion depending on eligibility. Has the Department done proper costings in the context of abolishing the means test? Will the Minister clarify the figures from which the Department is working? Have any equality or poverty impact assessments been conducted as part of this work to ensure that the most vulnerable are not disproportionately affected?

Dara Calleary (Mayo, Fianna Fail)
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I reiterate our full support for carers. I fully recognise the gender impact caring has. Deputy Ardagh is right to highlight that.

It is important to look at the progress made on disregards in recent years. I want that to continue and for more people to qualify for the payment. The carer's support grant, which was paid at the beginning of June, is not subject to a means test. It is paid out. We are working through all the issues that were highlighted by the Deputy to get an effective costing for the phasing out of the means test and the other issues she highlighted. We will continue to do that.

In the context of budget 2026, I intend to seek the support of my colleagues to once again substantially increase the income disregards. That will be done in the context of the budgetary negotiations.

As stated, there are other supports for family carers. The carer's support grant was the highest ever. It was paid out on 5 June with an investment of €334 million.

Catherine Ardagh (Dublin South Central, Fianna Fail)
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Carers are saving the State billions of euro. The highest figure we have seen for the amount involved is €3 billion. In any event, the savings being made are enormous. People provide care for children with complex needs, older people and family members with serious illnesses. They do so out of love and with very little support from the State.

While the increases to income disregards are welcome, they are not a substitute for fully abolishing the means tests. Carers, as the Minister stated, are the backbone of our society, providing essential care the State would otherwise struggle massively to offer. The financial and emotional toll on individuals is immense and abolishing the means test would go some way to helping those families. Will the Minister provide a detailed plan for how the carer's allowance means test will be abolished? If he would give me a timeline for how it will be implemented over the course of Government's term of office, it would be appreciated.

Dara Calleary (Mayo, Fianna Fail)
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I assure the Deputy that we are working on the plan and on what will be involved, not only financially but also in other ways, in the context of abolishing the means test, and we will continue to do so.

I also highlight that a great deal of work has been done to support long-term carers. The long-term carer's contribution scheme ensures that people who have been full-time carers for at least 20 years will get contributions to cover the gaps in their records in order to allow them to qualify for the contributory State pension. That is beginning to take effect with carers who would otherwise have lost their contributions and not got any recognition for their work.

We are fully committed to phasing out the means test, but I am conscious that there are other supports and issues we need to improve on. Other Departments also have work to do in supporting carers. This is not just the responsibility of the Department of Social Protection. Other Departments are involved in supporting full-time carers, family carers and those who work in the care industry. Across government, we will be keeping a focus on this.