Charlie O'Connor (Dublin South West, Fianna Fail)
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Question 307: To ask the Minister for Social and Family Affairs his views on abolishing the means test for the carer's allowance; the funding being allocated to support carers in 2007; and if he will make a statement on the matter. [5640/07]

Séamus Brennan (Dublin South, Fianna Fail)
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Supporting and recognising carers in our society is and has been a priority of the Government since 1997. Over that period, weekly payment rates to carers have been greatly increased, qualifying conditions for carer's allowance have been significantly eased, coverage of the scheme has been extended and new schemes such as carer's benefit and the respite care grant have been introduced and extended.

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 spouse's earnings disregard. Following Budget 2006, since April, 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 and still qualify for the maximum rate of carer's allowance as well as the associated free travel and household benefits. This measure surpasses the commitment in "Towards 2016" to ensure that those on average industrial earnings can continue to qualify for a full carer's allowance. Complete abolition of the means test for carer's allowance would cost in the region of over €140 million in a full year.

From June 2005, I extended the annual respite care grant 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. In Budget 2007 I provided for the level of the grant to increase by €300 to €1,500 from June 2007.

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. From September 2007 people in receipt of another social welfare payment who are also providing full time care and attention to a person will be able to retain their main welfare payment and receive another payment depending on their means, the maximum of which will be equivalent of a half rate carer's allowance. It is estimated that approximately 18,000 carers will benefit from this measure at cost of €56.72 million in a full year. The precise details regarding how this new arrangement will operate are being examined and will be set out in legislation shortly.

The improvements for carers which I announced in Budget 2007 will cost over €107 million for a full year. As a result of these improvements expenditure on weekly payments to carers will be in the region of €357 million in 2007. A further €64.5 million will be provided to carers in the form of respite care grants. In addition, as a consequence of the new arrangements in relation to receipt of another welfare payment while caring, 18,000 carers will also benefit from expenditure from other non-caring schemes of approximately €57 million in a full year and nearly €14 million in 2007.

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.