Arthur Morgan (Louth, Sinn Fein)
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Question 285: To ask the Minister for Social and Family Affairs the cost per year of increasing the maximum disability allowance payment of €185.80 per week by €20 to €205.50 per week. [28502/07]

Martin Cullen (Waterford, Fianna Fail)
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The cost per year of a €20 increase in the maximum personal rate of Disability Allowance to €205.50 per week is €100.98m. This figure includes both the increases for the personal rate as well as the proportionate increases for Qualified Adults.

Arthur Morgan (Louth, Sinn Fein)
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Question 287: To ask the Minister for Social and Family Affairs the cost per year of increasing the disability allowance limit for disregarded earnings applying to rehabilitative work from €120 per week to €150 per week. [28521/07]

Martin Cullen (Waterford, Fianna Fail)
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As of 1 June, 2006, the income disregard for Disability Allowance is no longer a flat income limit of €120 but instead operates on the basis of a tapered withdrawal rate between €120 and €350. This means that all income up to €120 is disregarded as means when assessing entitlement, while income between €120 and €350 is assessed on the basis of 50 cents for every euro earned. The effect of this tapered withdrawal rate is that a single person can earn up to €420 per week before their Disability Allowance fully ceases.

Prior to the introduction of the tapered withdrawal, a flat income limit of €120 was in place meaning that once a person exceeded earnings of €120 per week, payment of their Disability Allowance was withdrawn on a euro for euro basis. The result of this approach for a single person was that he/she could earn up to a maximum of €240 per week before payment of Disability Allowance fully ceased. The approach, suggested by the Deputy, of increasing the income disregard to €150 would have a full year cost of approximately €7.8m and would have the initial benefit of disregarding all income up to level. However, this would also mean that all income above €150 would be assessed on a euro for euro basis, providing no incentive to increase earnings from employment above that level.

Such an approach conflicts with one of the underlying policy principles relating to incentives to work, i.e. that there must be a reward for working. A review published by the Department of Social and Family Affairs in 2004 of the Illness and Disability Payment Schemes suggested that continually increasing the income disregard level is not the most appropriate answer to the disincentive problem. Instead, that Review favoured introducing a mechanism which would allow for the gradual reduction of social welfare benefits as earnings increase, thereby allowing people who increase their earnings or employment potential to see an increase in the overall income level. It was in this context that the tapered withdrawal rate was introduced in 2006 and has, thus far, resulted in a 30 per cent increase in the number of people availing of the disregard for earnings from rehabilitative employment.

Paul Gogarty (Dublin Mid West, Green Party)
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Question 289: To ask the Minister for Social and Family Affairs if there are plans to review the carer's allowance in relation to the use of a means test to calculate the amount of carer's allowance payable to applicants; and if he will make a statement on the matter. [28559/07]

Martin Cullen (Waterford, 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 greatly increased, qualifying conditions for carer's allowance have 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. The primary objective of the carer's allowance is to provide income support to low income carers. Carer's allowance, in line with other social assistance schemes, is means tested. This ensures scarce resources are directed at those in greatest need.

The carer's allowance means test is one of the more flexible tests in terms of the assessment of household incomes. The means test has been significantly eased over the years most notably with regard to spouse's earnings. Budget 2007 provided for an income disregard for a couple of €640 per week. This ensures a couple can earn in the region of €36,000 per annum and still receive the maximum rate of carer's allowance and the associated free travel and household benefits. This measure surpasses the Towards 2016 commitment to ensure those on average industrial earnings continue to qualify for a full carer's allowance.

In addition, the rates of carer's allowance have been increased to €200 per week for those aged under 66 and to €218 per week for those aged over 66. From June 2005, the respite care grant was extended to all carers who are providing full time care and attention to a person who needs such care, regardless of their income. Those persons in receipt of other social welfare payments, excluding jobseeker's allowance and benefit, are entitled to this payment subject to meeting the full time care condition. From June 2007, the level of the grant was increased by €300 to €1,500 per year.

The complete abolition of the means test would have substantial cost implications and it is debatable whether this could be considered to be the best use of resources. The view of some support and health organisations is that it would be much more beneficial to carers if additional resources were invested 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 will keep the supports for carers available from my Department under review in order to continue to improve the schemes and ensure commitments on income support are delivered.