Written answers

Tuesday, 11 November 2008

Department of Social and Family Affairs

Social Welfare Code

10:00 pm

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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Question 445: To ask the Minister for Social and Family Affairs if she will increase the rate of carer's allowance and benefit to €300 per week to reflect the true value of the work done by carers; and if she will make a statement on the matter. [39702/08]

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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Question 447: To ask the Minister for Social and Family Affairs if she will permit carers to work for 20 hours per week while retaining their eligibility for carer's allowance; and if she will make a statement on the matter. [39704/08]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 480: To ask the Minister for Social and Family Affairs if she has proposals to improve the carer's allowance particularly in respect of families caring for one or more children or adults; and if she will make a statement on the matter. [40009/08]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 445, 447 and 480 together.

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.

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 primary objective of the carer's allowance is to provide income support to low income carers. 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 since April, 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 a s well as the associated free travel, household benefits package and the respite care grant. This increase surpasses the Towards 2016 commitment to ensuring that those on average earnings can qualify for carer's allowance.

In Budget 2009 I increased the rate of carer's allowance for those aged 66 or over by €7 per week to €239 per week and the rate of carer's allowance for those aged under 66 by €6.50 from €214 to €220.50 per week. In addition, I increased the rate of carer's benefit by €6.50 from €214.70 to €221.20 per week. These increases will take effect from January 2009.

One of the fundamental qualifying conditions for carer's allowance, carer's benefit and the respite care grant is that the person be providing full-time care and attention to a person who needs such care.

Since the introduction of the carer's allowance scheme this full time care and attention requirement has been eased in order to facilitate carers in engaging in employment, education or training.

The number of hours a person may engage in employment, self employment, training or education outside the home and still be considered to be providing full-time care and attention was increased from 10 to 15 hours per week in June 2006.

A carer who is caring for more than one person may be entitled to receive a rate equivalent to 150% of the carer's allowance. 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. Since then a grant is paid in respect of each care recipient. A carer who is caring for two or more persons is entitled to a full grant for each of the care recipients. From June 2008, the rate of the grant was increased to €1,700 per year.

There are no plans to increase the number of hours for which people can engage in employment, outside the home and still be eligible for carer's payments from the Department. Changes to the rate of Carers Benefit or Carers Allowance would have to be considered in a budgetary context.

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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Question 446: To ask the Minister for Social and Family Affairs if she will ensure that carers, who give up work to care for a loved one, do not lose out in relation to qualification for an old age contributory pension; and if she will make a statement on the matter. [39703/08]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 472: To ask the Minister for Social and Family Affairs if she will award contributory old age pension credits to carers who have provided care for 10 years or more; and if she will make a statement on the matter. [40001/08]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 446 and 472 together.

The social welfare pension rights of those who take time out of the workforce for caring duties are protected by the homemaker's scheme which was introduced in and took effect from 1994. The scheme allows up to 20 years spent caring for children or incapacitated adults to be disregarded when a person's social insurance record is being averaged for pension purposes. The question of changing the disregard system to one based on credited contributions is being considered in the context of the Green Paper on Pensions.

However, the homemaker's scheme will not of itself qualify a person for a pension. The standard qualifying conditions, which require a person to enter insurance 10 years before pension age, pay a minimum of 260 contributions at the correct rate, and achieve a yearly average of at least 10 contributions on their record from the time they enter insurance until they reach pension age, must also be satisfied.

There is also a number of other ways in which pension entitlements can be protected. People who qualify for payments such as carer's allowance or carer's benefit may, subject to conditions, qualify for credited contributions for the period they are receiving the payment.

From June 2006, the number of hours a person can engage in employment, self employment, education or training outside the home and still be eligible for carer's allowance, carer's benefit and the respite care grant was increased from 10 to 15 hours per week. This means that where a carer remains in employment he or she will continue to pay the appropriate social insurance contribution. Also, any person, including a carer, may pay voluntary contributions once they satisfy certain qualifying conditions.

There are, of course, people caring who cannot benefit from these measures. Their position is discussed in the Green Paper on Pensions and decisions in relation to them will be made in the context of the framework for future pension policy, which I expect to finalise by the end of the year.

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