Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Question 176: To ask the Minister for Social and Family Affairs the cost of doubling the threshold for the means test for carer's allowance, of eliminating the means test for carer's allowance and of extending the period of carer's benefit from two years to four years; if she has carried out an assessment of the case for making changes such as these; and if she will make a statement on the matter. [20355/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

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. 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. It has been significantly eased over the years, most notably with regard to spouse's earnings.

Increases to the carer's allowance income disregard, provided for in Budget 2008, mean that from April 2008, a single person can have an income of €332.50 per week and a couple can have an income of up to €665 per week and still qualify for the maximum rate of carer's allowance (the previous levels were €320 and €640 per week respectively). This ensures that a couple can have an income in the region of €37,200 per year and still qualify for the maximum rate of carer's allowance as well as the associated free travel, household benefits package and the respite care grant. This increase surpasses the "Towards 2016" commitment of ensuring that those on average earnings can qualify for carer's allowance.

It is estimated that the cost of doubling the threshold for the means test for carer's allowance would be in the region of €100 million and that eliminating the means test for the scheme entirely would cost in the region of €150 million per year. Budget 2007 provided for new arrangements whereby people can receive a maximum payment equivalent to a half rate carers allowance while receiving another social welfare payment, other than jobseekers benefit or allowance. In June 2006 the number of hours for which a person can engage in employment, self-employment, education or training and still be considered to be providing full time care for the purposes of carer's allowance, carer's benefit and the respite care grant was increased from 10 to 15 hours per week.

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. A carer who is caring for two or more people is entitled to a full grant for each of the care recipients. The rate of the grant will increase to €1,700 per year from June 2008.

Carer's benefit is specifically intended to support people who leave the workforce temporarily to care for someone who is in need of full-time care and attention. Budget 2006 extended the duration of carer's benefit from 15 to 24 months. The associated carer's leave scheme which allows for the protection of the carer's employment rights for the duration of the caring period was similarly extended in 2006. The carer's leave scheme is the responsibility of my colleague, the Tánaiste and Minister for Enterprise, Trade and Employment.

It is estimated that extending the duration of the carer's benefit scheme from 2 to 4 years would cost in the region of €20 million per year. However, this would depend on scheme take-up which is difficult to estimate. In this regard, employers have noted that they would experience difficulties in preserving employees' rights for more than 2 years. If the need for income support still exists after carer's benefit has expired, the carer may apply for carer's allowance. 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.