Séamus Brennan (Dublin South, Fianna Fail)

I thank both Senators for their comments. The means test has been eased significantly in the past few years, particularly with the introduction of the disregard of the spouse's earnings. Provision was made in the recent budget to increase the income disregard on the carer's allowance means test to €320 per week for a single person and €640 per week for a couple from April 2007. This means a couple with two children can earn in the region of €36,000 per annum and still receive the maximum rate of carer's allowance. The same couple will be able to earn just over €57,500 and receive the minimum rate of carer's allowance, as well as free travel, the household benefits package and the respite care grant. In June 2006, average industrial earnings were estimated at €602 per week or €31,000 per annum. Therefore, the recent increase surpasses the commitment in Towards 2016 to ensure that those on average industrial earnings continue to qualify for a carer's allowance.

On the removal of the means test, the cost is approximately €140 million in a full year. Deputy Penrose has been pursuing me on this for a long time. I have an open mind on its removal, but in respect of the approximate €140 million, I have chosen at this point to put that type of funding into improving the disregards and the amount of a carer's allowance so that those who do the job are better supported. The disregards are increased dramatically as can be seen from the high levels in recent years. Whether there should be a complete removal of the means test is an issue for debate. It is really a matter of whether we should use the funds to allow everybody have a carer's allowance irrespective of income or whether we should use the funds to improve disregards and increase the allowance itself.

Some 28,800 people are in receipt of carer's allowance and a further 1,800 are in receipt of carer's benefit. Some 44,400 people will receive the respite care grant, which is not means tested, this year. The current cost of the respite care grant is €66 million and the carer's allowance costs €342 million. There have been strong improvements in the area of carers.

I believe we are coming to a crossroads in respect of carers, which is why our strategy is so important. We must stand back and define the role of a carer and decide whether we can continue supporting the role by way of income supports for people on low incomes or on welfare payments who find themselves caring or whether we need to look as caring more as an occupation. The carer's strategy will have to look closely at this question.

The Minister for Health and Children said recently that it costs four times as much to maintain a person in a residential institution than at home. While we provide strong income supports, it is doubtful we can continue to respond to the situation in this manner or whether it is sustainable to do so for the future. The strategy will have to face up to the question of whether the role of carer should be a more formal role in society. If we make that change, there will be significant costs involved. We should put the question on the table and examine the role of carers. Carers must be cared for also. If we do not care for them, the cared for will not get the kind of care they deserve.