John Paul Phelan (Fine Gael)

I move recommendation No. 2:

In page 9, before section 1, to insert the following new section:

"1.—The Principal Act is amended in section 466A by the substitution of the following for subsection (2):

'(2) Where in any year of assessment an individual proves that he or she is a qualifying claimant he or she shall be entitled to a tax credit (to be known as the 'home carer tax credit') of a sum equal to the higher of the amount specified in section 472 of this Act.'.".

This recommendation proposes the increase in the home carer's allowance which was introduced a few years ago following the hubbub created after the introduction of individualisation. In a subsequent Finance Bill an attempt was made by the then Minister for Finance, Mr. McCreevy, to allay some of the fears and respond to representations possibly made by some of his colleagues. The home carer's allowance of €770 was introduced. My recommendation seeks to increase the allowance to give it parity with the PAYE tax credit.

I have spoken before in this House on finance and other Bills regarding the importance of carers in our society. They are a greatly undervalued body of people. This recommendation attempts to restore some parity for those people who perhaps deliberately step out from the workforce to look after dependants in the home, whether rearing children or looking after old, infirm or ill relatives. These people provide a great service to the nation and ensure that costs which would otherwise be incurred by the Exchequer are in many cases not incurred and placed as a burden on the State. The increase in the allowance, in the overall context of the amount of money carers save the Exchequer annually, would be a good return on investment. I ask the Minister to consider the recommendation.