Finian McGrath (Dublin North Central, Independent)
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Question 383: To ask the Minister for Social Protection her plans for further cuts to the carer's allowance (details supplied). [41160/11]

Joan Burton (Dublin West, Labour)
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Carers play a particularly important role in society which the Government acknowledges through a range of supports, including carer's allowance, half-rate carer's allowance, carer's benefit, the respite care grant, free travel and household benefits.

The means test for carer's allowance is one of the most generous means tests in the social welfare system, most notably with regard to spouse's earnings. Since April 2008, the income disregard has been €332.50 per week for a single person and €665 per week for a couple. A couple with two children can earn up to €35,400 and qualify for the maximum rate of carer's allowance while a couple earning €59,300 will still qualify for the minimum rate of carer's allowance.

One of the measures introduced as part of Budget 2012 is that income from weekly carer's payments will be included for the purposes of calculating entitlement to Family Income Supplement (FIS) in line with other welfare payments, on a phased basis with effect from January 2012.

Entitlement to FIS is based on the level of a family's income including net income from employment and the value of any social welfare payments they might have. However, income from carer's allowance and carer's benefit was an exception and was not taken into account in assessing family income for FIS purposes prior to January 2012.

From January 2012, for new applicants and upon renewal for existing claimants, income from carer's allowance and carer's benefit payments will be included in the (FIS) income assessment. The measure will be implemented over 3 years with 1/3 of the income from carer's allowance and carer's benefit payments assessed in 2012, 2/3 in 2013 and full assessment in 2014.

This provides for a more consistent approach to the concurrent payment of FIS with other social welfare benefits through the standardisation of the treatment of social welfare income for this purpose. The reform reduces a person's secondary payment (FIS) without affecting their primary payment, therefore targeting available scarce resources at those in most need.