Michael Lowry (Tipperary North, Independent)
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Question 413: To ask the Minister for Social and Family Affairs the reason a person in receipt of widow's pension must forfeit that payment in order to claim carer's allowance; if he will consider disregarding widow's pension for claimants of carer's allowance; if the current carer's allowance means test discriminates unfavourably against widows; and if he will make a statement on the matter. [27944/06]

Séamus Brennan (Dublin South, Fianna Fail)
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The carer's allowance is a social assistance payment which provides income support to people who are providing certain elderly or incapacitated persons with full time care and attention and whose incomes fall below a certain limit.

The primary objective of the social welfare system is to provide income support and, as a general rule, only one weekly social welfare payment is payable to an individual. This ensures that resources are not used to make two income support payments to any one person. Persons qualifying for two social welfare payments always receive the higher payment to which they are entitled.

According to Census 2002 there are over 48,000 people providing personal care for over 4 hours per day and of these just over 2,400 are widowed people. There are currently over 26,800 people in receipt of either carer's allowance or carer's benefit. It is likely that a proportion of the balance is in receipt of another social welfare payment, including widow(er)'s pension.

In Budget 2006, I provided for a significant increase in the rate of carer's allowance. From January this year, the rate of carer's allowance increased to €200 per week for carers aged 66 years and over. This rate of payment may be higher in many instances than the rate of widower(er)'s pension payable to a person. Such a person who is providing full time care and attention to a person who requires such care may be entitled to receive this higher rate of carer's allowance. I would urge any person in this position to make enquiries with my Department.

In addition, from June 2005, the annual respite care grant was extended to all carers who are providing full time care to a person who needs such care regardless of their income. Those persons in receipt of other social welfare payments, excluding unemployment assistance and benefit, are entitled to this payment subject to meeting the full time care condition. This arrangement was introduced to acknowledge the needs of carers especially in relation to respite. Provision was made in Budget 2006 to increase the amount of the respite care grant from €1,000 to €1,200 from June.

In line with other social assistance schemes, a means test is applied to the carer's allowance so as to ensure that limited resources are directed to those in greatest need. This means test has been eased significantly over the years, most notably with the introduction of the disregards of spouses' earnings. Following Budget 2006, since April, a couple with two children can earn up to €32,925 per annum and still receive the maximum rate of carer's allowance. The same couple will be able to earn up to €54,400 and receive the minimum rate of carer's allowance as well as free travel, the household benefits package and the respite care grant.

Complete abolition of the means test for carer's allowance would cost an estimated €140 million in a full year. 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.

I am always prepared to consider changes to existing arrangements where these are for the benefit of recipients and financially sustainable within the resources available to me. Those recommendations involving additional expenditure can only be considered in a budgetary context.