David Stanton (Cork East, Fine Gael)
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Question 304: To ask the Minister for Social and Family Affairs further to Parliamentary Question No. 455 of 21 March 2006, the way in which he estimated that the cost of abolition of the means test for receipt of the carer's allowance would be €140 million in a full year; and if he will make a statement on the matter. [18502/06]

Séamus Brennan (Dublin South, Fianna Fail)
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The estimated cost of €140 million was based on data available last year and the rate of carer's allowance at that time. According to Census 2002 there are 48,500 carers caring for 29 or more hours per week of which 15,700 are working for over 10 hours per week and so would not be eligible for carer's allowance. Some 25,000 people were in receipt of a carer's allowance. Approximately, 6,000 of the remaining group received the respite care grant in 2005. It was assumed that these 6,000 people would constitute the additional recipients of carer's allowance if the means test were abolished. The cost of paying a full rate carer's allowance to this group plus the cost of the free schemes which they would also receive would be approximately €54 million in a full year.

It is estimated that approximately 14,000 recipients of carer's allowance in 2005 were in receipt of another social welfare benefit or pension immediately prior to their receipt of carer's allowance. Assuming that, if the carer's allowance means test were abolished, other social welfare payments would also be payable, this could lead to an additional full year cost of approximately €74 million, depending on the level of the other payment. In 2005, approximately 2,550 recipients of carer's allowance were in receipt of a reduced rate payment. Abolition of the means test would mean that group would be entitled to a full rate payment. This would have full year cost of approximately €10 million. The combination of the cost associated with these three groups is approximately €140 million in a full year. Given increases in rates of payment from January 2006 this cost would now be higher.

I continue to keep an open mind on this issue but I think it is debatable whether such a proposal could be considered to be the best use of resources. The view of some support organisations is that if this level of resources were available, it would be more beneficial to carers if it were invested in further increases to carers allowance and in the type of community care services which would support them in their caring role, such as additional respite care facilities, more home helps, public health nurses and other such services.