Seanad debates

Thursday, 23 March 2006

Social Welfare Law Reform and Pensions Bill 2006: Committee and Remaining Stages.

 

11:00 am

Michael Brennan (Progressive Democrats)

The amendment calls on me to lay before the House a report on means testing in the area of carer's allowance. While I cannot accept the amendment on technical grounds, this formula is often used to ensure a debate takes place on an issue. I am always pleased to lay reports before the Seanad whenever requested and to come before the House to discuss issues. While I have no difficulty with the spirit of the amendment, it is not possible to accept it on technical grounds.

I was pleased to meet Senator McCarthy recently in Boston. When a person by the name of Senator McCarthy shows up at a function in the United States a shiver goes down spines but people were greatly relieved to learn that the Senator in question was a brand new, bright politician from Ireland as opposed to the subject of a current movie.

As Senators will be aware, the carer's disregards were significantly increased in the recent budget to €290 per week for a single person and €580 per week for a couple. As a result of this change, a couple with two children may earn up to €32,925 per annum and continue to receive the maximum rate of carer's allowance, while a couple earning up to €54,400 would receive the minimum allowance. In effect, when allowances are made for PRSI and other expenses, most family sizes on average industrial earnings will qualify for the maximum rate of carer's allowance, which is indicative of the good progress made.

The respite care grant, a popular relief for many people, has increased to €1,200. Senators requested that I do more to promote this grant and I undertake to do so. The family income supplement, FIS, campaign is going well and I will give some thought to introducing a carer's campaign thereafter with the aim of attracting more people to avail of the respite care grant. I am always prepared to contemplate changes and the Department has made many changes in the previous two budgets. This legislation is surrounded by reforms. I am open to change and progress because, with regard to the welfare system, I fundamentally believe that while finance and income are critical, the social policy behind them is also important. In that context, I have an open mind on abolishing the means test, which, as I previously stated, would cost €140 million. I am not convinced that represents the best use of €140 million, in so far as improving the disregards and raising income limits is probably more targeted than completely abolishing the means test. However, if a stage is reached where the efforts involved in administering the means test are greater than the cost would warrant, it may then be better to introduce a universal scheme. I will keep the matter under review as the year progresses. As the disregards are increased and more people are brought within the scheme, the cost of removing the means test theoretically decreases. However, provision must be made according to the resources available.

According to the CSO, 40,000 people provide care for more than six hours per day, 8,000 between four and six hours and 15,000 for between two and four hours. Some 85,000 people — a significant figure — provide care for fewer than two hours per day. These figures were revealed in replies to a question in the 2002 census on the number of people providing unpaid personal care for a friend or family member with a long-term illness, health problem or disability. The latter 85,000 fall into a different category of care and, while I do not say we should ignore them, they should be borne in mind when the headline figure of 150,000 is quoted. These figures probably need to be re-checked because they date from 2002.

The total cost of the budget package for carers this year is €54 million and overall support for carers has increased from €223 million in 2005 to approximately €270 million for the current year. Some 34,000 respite care grants were paid last year at a cost of €34 million and 2,268 claims were made for carer's benefit. I agree that carers should be recognised, valued and supported. An important issue also arises in terms of looking after the needs of carers so that they can see to the needs of others. Policy should now be focused on that.

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