Finian McGrath (Dublin North Central, Independent)
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Question 1144: To ask the Minister for Social and Family Affairs the situation regarding carers allowance especially for families of people with a disability; and if she will end the means test for these families. [43936/06]

David Stanton (Cork East, Fine Gael)
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Question 1191: To ask the Minister for Social and Family Affairs if all social welfare recipients who provide full time care for a person and satisfy the means test will be entitled to a half-rate carers allowance; if he will provide a listing of the social welfare schemes to which the half-rate payment will apply; and if he will make a statement on the matter. [3088/07]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 1144 and 1191 together.

Carer's Allowance is a social assistance payment paid to people who are providing full time care and attention to a person who needs such care. In order to qualify for the payment the person being cared for must need continuous supervision and frequent help throughout the day with their personal needs such as dressing, eating and drinking to continuous supervision to avoid danger to themselves and full time care and attention for at least 12 months. A carer may engage in employment, self-employment, education or training outside their home for up to 15 hours per week and still be considered to be providing full time care and attention.

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. Following Budget 2006, the earnings disregard for a couple has been set at €580 per week which is equivalent to gross average industrial earnings. As a result of further improvements which I announced in the Budget 2007 this disregard will increase to €640 per week for a couple from April 2007.

When this increase is in place a couple with two children will be able to earn up to €36,240 per year and still qualify for the maximum rate of carer's allowance as well as the associated free travel and household benefits. This measure exceeds the commitment in Towards 2016 to ensure that those on average industrial earnings can continue to qualify for a full carer's allowance.

In addition, I have increased the rates of carer's allowance to €200 per week for those aged under 66 and to €218 per week for those aged over 66.

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 Jobseeker's assistance and benefit, are entitled to this payment subject to meeting the full time care condition. From June 2007 the level of the grant will increase by €300 per year to €1,500 per year in respect of each person being cared for.

It is estimated that complete abolition of the means test for carer's allowance would cost over €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.

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. Persons qualifying for two social welfare payments receive the higher payment to which they are entitled. I am aware that this has been a cause of particular concern to people in receipt of a social welfare payment when they become carers.

For that reason I was very pleased to introduce fundamental structural reforms in this area in Budget 2007. Under new arrangements which will come into effect in September 2007 people in receipt of certain social welfare payments other than carer's allowance or benefit who are providing someone with full time care and attention will be able to retain their main payment and receive another payment, depending on their means, the maximum of which will be equivalent to a half rate carer's allowance. Details as to how this arrangement will operate are currently being finalized and will be set out in legislation shortly.

Towards 2016 commits the Government to continuing to review the scope for further development of the carer's allowance, carer's benefit and the respite care grant. I am committed to working for, and with, carers to deliver increased benefits, supports, and services for them and their families. The improvements for carers which I announced in Budget 2007 are further evidence of this commitment.