Written answers

Thursday, 3 February 2022

Department of Employment Affairs and Social Protection

Social Welfare Benefits

Photo of Verona MurphyVerona Murphy (Wexford, Independent)
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7. To ask the Minister for Employment Affairs and Social Protection if her Department plans to increase the level of income disregard for the carer’s allowance; and if she will make a statement on the matter. [5454/22]

Photo of Emer HigginsEmer Higgins (Dublin Mid West, Fine Gael)
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92. To ask the Minister for Employment Affairs and Social Protection when the changes for the carer’s allowance means test will come into effect; and if she will make a statement on the matter. [5100/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 7 and 92 together.

The Government recognises the important role that family carers play in Irish society and is fully committed to their support through a range of supports and services.

The main income supports to carers provided by my Department include Carer's Allowance, Carer's Benefit, Domiciliary Care Allowance, and the Carer's Support Grant. Spending on these payments in 2022 is expected to exceed €1.5 billion.

The current income disregard and means test for Carer’s Allowance is the most generous within the social welfare system. The amount of weekly earnings disregarded is €332.50 for a single person and €665 for a couple.

In acknowledgement of the crucial role that family carers play in our society I introduced a number of measures as part of Budget 2022 in relation to supports provided by my Department. These include the following changes to the carer means test which will take effect in June:

- An increase in the weekly income disregard for Carer’s Allowance to €350 a week for single carers and to €750 for carers with a spouse/partner,

- An increase in the Capital/Savings disregard for Carer’s Allowance from €20,000 to €50,000.

A more generous means assessment for Carer’s Allowance has been called for over successive Budgets by organisations representing carers. An increase in the general weekly income disregard will enable more carers with modest incomes to become eligible for Carer’s Allowance, and therefore provide an income support to carers, whose earning capacity is significantly constrained as a consequence of their caring responsibilities.

Increasing the capital disregard will allow carers who have accumulated relatively modest savings, often to provide sufficient moneys to care for a loved one, to retain these savings without it impacting upon their carer’s payment. It also brings the capital formula applied to savings in the means assessment for Carer’s Allowance in line with Disability Allowance.

Notwithstanding the increased level of support already in place for carers, my Department will keep these measures under review as part of the annual budgetary process.

Photo of Verona MurphyVerona Murphy (Wexford, Independent)
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8. To ask the Minister for Employment Affairs and Social Protection if she has given consideration to the disregard of means testing for the carer’s allowance payment; if such considerations have been discussed with other relevant Departments; and if she will make a statement on the matter. [5458/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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As I have already emphasised, the Government is fully supportive of the important role that family carers play in Irish society and is fully committed to their support through a range of supports and services. My Department provides a range of income supports to family carers including Carer's Allowance, Carer's Benefit, Domiciliary Care Allowance, and the Carer's Support Grant.

There are currently 90,896 people in receipt of Carer's Allowance. This represents an increase of 74% in the past 10 years, from 52,209 in 2012. The average time to award the Alllowance was 4 weeks in 2021, as compared to 14 weeks in 2019. My department understands the many pressures faced by carers and always seeks to ensure that claims are handled quickly and efficiently.

Decisions regarding the means test are taken in a budgetary context and are therefore subject to discussions with other relevant departments in the usual way.

I have made sure to speak to carer representatives myself to understand their concerns, and my Department engages with carer groups regularly. This level of engagement has helped inform some considerable improvements that have been introduced for carers in recent years, including:

- In Budget 2020, the number of hours a carer could engage in education, training or employment was increased from 15 to 18.5 hours.

- In Budget 2021, the Carer’s Support Grant was increased by €150 from €1,700 to €1,850 per year.

The current income disregard and means test for Carer’s Allowance is the most generous within the social welfare system in that €332.50 of gross weekly income is disregarded in the calculation of means for a single person. The equivalent for someone who is married, in a civil partnership or cohabiting is €665 of combined gross weekly income.

From June, as a result of the measures I announced in Budget 2022, the following improvements will be made to the carer means test:

- An increase in the weekly income disregard for Carer’s Allowance to €350 a week for single carers and to €750 for carers with a spouse/partner.

- An increase in the Capital/Savings disregard for Carer’s Allowance from €20,000 to €50,000.

I trust this clarifies the matter for the Deputy.

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