Michael Brennan (Progressive Democrats)

The budget package of €30 million in this area is designed to increase the level of support for carers. This increase makes the carer's allowance the largest single welfare benefit in the State, apart from the provision for the over 80s. The allowance rises to €200 a week, an increase of 17%, and the respite care grant increases by 25%, from €1,000 to €1,200. The income disregard for the carer's allowance is also increased so that recipients can earn more income.

A number of speakers asked me on Second Stage about the complete abolition of the means test. This has been costed at €140 million in a full year and it is debatable whether it would represent the best use of resources. I made provision in the budget for an increase in the carer's disregard. From April 2006, the disregard will increase to €290 for a single carer and €580 for a couple. This will ensure that a couple with two children earning a joint income of up to €32,925 will qualify for the maximum carer's allowance. A couple with two children and an income of €54,400 will qualify for the minimum carer's allowance, the household benefits package of free schemes and the respite care grant.

The carer's allowance means test is one of the more flexible tests in terms of the assessment of household incomes. We are always prepared to make any changes necessary to existing arrangements where they are for the benefit of carers. I have continued to review the issues raised by the Carers Association, the Joint Committee on Social and Family Affairs and other bodies. The Taoiseach, Tánaiste and I met with the representatives of the Carers Association before the budget and they explained their priorities. They were particularly interested in a carers' strategy and we were able to tell them we had no difficulty in agreeing to a strategic approach to improving the position of carers. The more one does for carers, the more is done for those who require that care, which is the objective. These changes make the carer's allowance the largest single allowance in the State, ahead of unemployment support and pensions.

Senator Cox gave the example yesterday of widows who take on a caring role and are unable to get the carer's allowance without forgoing their widow's pension. This restriction is based on the doctrine of one payment per welfare recipient. I looked closely at this issue because I had intended to move in the direction of introducing a half-rate carer's allowance for persons such as those in receipt of the widow's pension. When we examined this issue, however, it opened up the vista of an entire range of other situations where one could argue for half-rate payment for those already in receipt of another welfare payment. There are serious difficulties in this regard.

Instead, I decided to make the carer's allowance the largest allowance. We will try to keep it well ahead in years to come so that people will move to it from other rates because they will receive substantially more. Heretofore, the carer's allowance was less than other allowances and there was no incentive to take a caring role. It is a better approach to ensure that carers move off their other allowances and receive the carer's allowance and the associated additional funds. This is the first step in providing adequate provision for carers. I previously believed pensions would increase to €200 per week long before that figure was achieved for the carer's allowance. In the circumstances, however, it makes sense that the carers got there first.

I understand the arguments in favour of the suggested half payment. However, such a provision would cause many difficulties throughout the system in breaking with the doctrine of one payment per welfare recipient. That principle must be retained or the entire system will come into considerable disrepute. The best way to recognise carers is to allocate significant funds to the carer's allowance. The funding of €30 million makes it the highest allowance in the State, with the exception of the allowance for the over 80s.