Holly Cairns (Cork South West, Social Democrats)
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152. To ask the Minister for Employment Affairs and Social Protection her views on recognising the costs associated with caring in the deductions allowable for carer’s allowance and assess income on its net rather than gross value; and if she will make a statement on the matter. [35314/21]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The system of social assistance supports provides payments based on a system of means testing. The means test ensures that the recipient has a verifiable income need and that resources are targeted to those who need them most.

By its nature, the means test takes account of the income a person or couple has in terms of cash, property - other than the family home - and capital. It does not take account of a person’s expenditure. In line with most social assistance payments, deductions permitted for carer's allowance include PRSI, union dues, superannuation (pension contributions) and travel expenses. Uniquely in the system, an income disregard of €332.50 per week (or €665 for a couple) applies to carer's allowance. A couple with an annual gross income of up to €37,500 (net of PRSI and other allowable deductions) can qualify for a maximum payment, and a couple with an income of up to nearly €60,000 can still qualify for a reduced rate.

If net rather than gross income was assessed for Carer's Allowance, it would mean that changes in tax rates or tax reliefs could change the claimant’s rate of carer’s allowance. In addition, to deduct costs associated with caring would significantly increase the complexity of the means assessment. It would also have significant budgetary implications and would give rise to inconsistencies in how means tests are applied across schemes.

The carer's support grant is an annual non-means tested payment made by my Department to carers. This grant was increased to €1,850 this year and may be used in whatever way the carer wishes.

I recognise the crucial role that carers play in Irish society and will continue to seek to improve the supports for carers. However, any changes must be considered in an overall budgetary context.