Claire Kerrane (Roscommon-Galway, Sinn Fein)
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488. To ask the Minister for Employment Affairs and Social Protection if consideration has been given to providing exemptions for specific types of savings within means testing for carer’s allowance such as cases (details supplied) and in consideration of forthcoming changes to capital thresholds later in 2022; and if she will make a statement on the matter. [16555/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The Department operates a range of means-tested social assistance payments. Social welfare legislation provides that the means test takes account of the income and assets of the person (and spouse / partner, if applicable) applying for the relevant scheme. Income and assets include income from employment, self-employment, occupational pensions, maintenance payments as well as property owned (other than the family home) and capital such as savings, shares, and other investments.

The assessment of capital reflects an expectation that people with reasonable amounts of capital and property are in a position to use that capital, or to realise the value of the property, to support themselves without having to rely solely on a means-tested welfare payment.

Savings held for a specific purpose are not, as such, specifically disregarded. However, most social assistance schemes, such as Carer's Allowance, have a general capital disregard meaning the full amount of capital is not assessed.

The standard formula for assessing the value of capital for social welfare payments (except Disability Allowance and Supplementary Welfare Allowance) is as follows: the first €20,000 is fully disregarded; the next €10,000 is assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand.

As part of Budget 2022, I was pleased to announce that, from June this year, the capital disregard for Carer’s Allowance will increase to €50,000, bringing it into line with the capital disregard for Disability Allowance. The new formula will be as follows: the first €50,000 is fully disregarded; the next €10,000 is assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand.

The weekly income threshold for Carer’s Allowance will also increase to €350 for a single person and to €750 for a couple. The combination of these measures means that a couple can have earnings of €750 per week, as well as savings of €100,000, and still receive the maximum rate of Carer’s Allowance.

Any further changes to the means assessment for Carer’s Allowance would have to be considered in the overall policy and budgetary context.