James O'Connor (Cork East, Fianna Fail)
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79. To ask the Minister for Employment Affairs and Social Protection the number of persons who will gain from the changes in the means test for the carer’s allowance announced in budget 2026; and if he will make a statement on the matter. [62283/25]

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Deputy Pádraig O'Sullivan is taking this question on behalf of Deputy O'Connor.

Dara Calleary (Mayo, Fianna Fail)
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I thank Deputies O'Sullivan and O'Connor for the question. The programme for Government contains the commitment to abolish the means test for carers over the life of the Government. Budget 2026 increases the earnings disregard for carer's allowance by €375 to €1,000 per week for a single person and by €750 to €2,000 per week for a couple from July 2026. These are the largest ever increases in the carer's income disregards. They are evidence of my commitment and determination to deliver on the programme for Government commitment. Since 2022 the disregards will have increased cumulatively by €667.50 per week for a single person and €1,335 per week for a couple.

The budget 2026 measure will benefit those current recipients who are on a means-reduced rate and who will see an increase in their payment rate, and those people making new claim applications subject to a means reduced rate in 2026. On foot of the increases in the carer's allowance income disregards, a single person who provides full-time care but also does part-time work will next year be able to earn just over €54,000 and receive a full carer's payment. Similarly in a couple household, a person who is providing full-time care and where their partner might earn approximately €108,000 per annum will receive a full carer's payment.

There are wider implications of departing from a means-tested approach and for this reason the income disregard is being abolished in a measured way over a number of budgets in line with the programme for Government commitment. Given that the scheme is demand led, and given also that it is likely that many people who are above the means threshold will have not previously applied for carer's allowance owing to this, it is difficult to estimate potential inflow from these measures. However, as with other schemes, the number of payments to be made under the scheme is not budget capped and the Department will closely monitor the inflow into the scheme to assess any change in trends. Data on take up will be published in all of our quarterly statistical releases.

Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
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In budget 2026, recognition was given, as the Minister just outlined, to the massive contribution that family carers made in Irish society. Progress has been made, albeit not as quickly as some may have liked. Nonetheless, I know that more needs to be done. I have listened to the Minister intently this morning and over recent months. I welcome the fact that the Minister has reiterated here once again that his ambition is still to end the means test for carers in the lifetime of the Government.

Will the Minister outline further his plans for income disregards for carer's allowance? I know he said it would be difficult to forecast it, given the variables he is dealing with, but I ask him to outline his approach and how he intends on doing it in this staged fashion. Will it be in four equal parts over the four years? Will it be a lot more complex than that? He has probably already indicated that it will be. I will revert to the question and ask whether the Minister has any estimate on the number of people who have benefited from the specific measure introduced in budget 2026.

Dara Calleary (Mayo, Fianna Fail)
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The context of the commitment in the programme for Government is to do it in a progressive manner as part of the annual budget process. We are still finalising budget 2026 in terms of passing the Bill and we have not given a huge focus to 2027 yet. In terms of abolishing the carer's allowance, the Department has estimated a cost of approximately €600 million. This is based on administrative data. It is derived from the number of people on a reduced rate payment due to means, the number on a half-rate payment perhaps due to an overlap with another social welfare payment, and those who are in receipt of the non-means tested carer's support grant. This cost, however, could stretch to a potential €3 billion per annum if everybody who self-declared as a carer in census 2022 were to qualify. This latter figure is a very high-level estimate but it gives a sense of the range. This gives a sense of the implications of departing from a means-tested approach. That is why we will be abolishing it in a measured way over a number of budgets. This year's increase of 60% gives a sense of my ambition and determination in that regard. I certainly will be pursuing further increases. To give a little bit of leeway, we must also bear in mind that we have to look after those who are on existing carer's payments to ensure they get support as well.

Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
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I know it might not be popular to say it with some people inside here, but the €600 million VAT exemption given to hospitality might have been better devoted to this area in the budget.

To finish, I want to highlight a particular concern I have about people providing full-time care to more than one person in their homes. Will the Minister please outline how we are going to help these people in particular, as I believe they are a cohort under the most pressure? Will the Minister update us on plans to introduce a pay-related carer's benefit for individuals who have to give up work suddenly in order to provide full-time care for their loved ones?

Dara Calleary (Mayo, Fianna Fail)
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I will revert to the Deputy on the first point regarding multiple people in a home. With regard to pay-related carer's benefit, and as Deputy O'Sullivan knows, we introduced a pay-related jobseeker's benefit earlier this year. I am waiting to do a full 12-month evaluation of the impact of this scheme. It will give me guidance on introducing it for carers and for parental leave.

Once again, I emphasise my determination to abolish the means test. The income disregards we increased this year mean that people who have never before engaged with the Department of Social Protection will have the opportunity to receive a full carer's payment. That is why it is challenging to estimate the number of people who will be involved. An income of more than €108,000 for a two-adult household is substantial and it will now get a social protection payment. The same carer with an income of €138,000 will retain a partial payment. We are determined to get rid of this means test and to ensure proper supports are given to those on the payment.