Richard Bruton (Dublin Bay North, Fine Gael)
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589. To ask the Minister for Employment Affairs and Social Protection if she plans to review the means limits for the carer’s allowance which have been in place for many years given that an hourly rate for 18.5 hours is well below the average industrial wage. [10462/21]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The main income supports for carers provided by my Department are Carer’s Allowance, Carer’s Benefit, Domiciliary Care Allowance and the Carer’s Support Grant. Combined spending on all these payments to carers in 2021 is expected to exceed €1.4 billion.

At the end of December 2020, there were 88,906 people in receipt of Carer's Allowance. The estimated expenditure on Carer’s Allowance in 2021 is approximately €953 million.

Carer's Allowance acts as an income support for those who cannot earn adequate income in the open labour market due to their caring responsibilities. This allowance is part of the system of social assistance supports that provide payments based on an income need. The means test plays a critical role in determining whether or not an income need arises as a consequence of a particular contingency – such as disability, unemployment or caring. This ensures that the recipient has a verifiable income need and that resources are targeted to those who need them most.

In order to support a carer’s continued attachment to the workforce and broader social inclusion, carers may engage in some limited employment, education or training, of up to 18.5 hours per week while still being regarded as being in a position to provide full-time care. Just as in the case of other income support payments carer's allowance is not intended to be a compensatory payment for the full value of earnings foregone nor is it a payment by the State in recognition of caring services rendered.

My Department carried out a comprehensive Policy Review of Carer’s Allowance in 2019 including an examination of the means test.

The means test for Carer's Allowance is one of the most generous in the social welfare system, most notably with regard to spouse’s earnings. The amount of weekly earnings disregarded is €332.50 per week for a single person and €665 per week for a couple. By comparison, the income disregard applied to Disability Allowance is €120 per week (as per Budget 2021 this will increase to €140 per week from June 2021). For Jobseeker's Allowance, it is €20 per day up to a maximum of €60, and the balance is assessed at 60%. For Jobseeker's Transitional Payment, the weekly income disregard is €165 with 50% of the balance assessed as means.

Changes to schemes are considered in an overall expenditure and policy context and from an evidence-based perspective. It should be noted that some 92% of the current recipients of Carer’s Allowance have no means or means of less than €7.60 per week and would not benefit by an increase in the disregard.

I can assure the Deputy that I am very much aware of the key role that family carers play in our society and I will continue to keep the range of supports available to carers under review. However, any improvements or additions to these supports can only be considered in an overall budgetary context and in the light of available financial resources.

I hope this clarifies the matter for the Deputy.