Written answers

Tuesday, 26 April 2022

Department of Employment Affairs and Social Protection

Social Welfare Code

Photo of Peadar TóibínPeadar Tóibín (Meath West, Aontú)
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1034. To ask the Minister for Employment Affairs and Social Protection if she plans to allow the means test assessment for carer’s allowance to be assessed on household net income; and if she has carried out a budgetary analysis of the maximum amount by which the household income earnings threshold for carer’s allowance could be raised which would be more cost effective to the State than a HSE-funded homecare package; and if she will make a statement on the matter. [20211/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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My Department provides a range of income supports for full-time carers including Carer’s Allowance, Carer’s Benefit, Domiciliary Care Allowance and the Carer’s Support Grant. Combined spending on all these payments to carers in 2022 is estimated to exceed €1.5 billion.

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.

While the caring requirements of carees may be different, this does not affect the rates of the allowance, which is intended to provide an income support for the carer and does not depend on individual care requirements.

By its nature, the means test takes account of the income a person or couple has in terms of cash and capital. It does not take account of a person’s expenditure. In line with most social assistance payments, deductions, such as PRSI, are permitted for Carer's Allowance.

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

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. This proposed change would also have significant budgetary implications and would give rise to inconsistencies in how means tests are applied across schemes.

My Department has not carried out a budgetary analysis along the lines suggested by the Deputy. The Home Support Service (formerly called the Home Help Service or Home Care Package Scheme) referred to is administered by the HSE and is a matter for the Minister of Health. This scheme aims to support older people to remain in their own homes and provides the older person with support for everyday tasks. As such the scheme is fundamentally different in its nature and purpose when compared to the Carer's Allowance payment provided by my Department.

I can assure the Deputy that I am keenly aware of the key role that family carers play in Irish society and the challenges they face. I will continue to keep the range of income supports provided to family carers under review. However, any improvements or additions to the current supports provided by my Department – such as introducing further changes to the means testing of Carer’s Allowance - would have implications for overall spending and could only be addressed in an overall budgetary and policy context.

I trust that this clarifies the matter for the Deputy.

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