Written answers

Tuesday, 4 October 2022

Department of Employment Affairs and Social Protection

Social Welfare Benefits

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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434. To ask the Minister for Employment Affairs and Social Protection the number of parents of incapacitated children who are in receipt of the full rate of carer's allowance; and if she will make a statement on the matter. [48363/22]

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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435. To ask the Minister for Employment Affairs and Social Protection the number of parents of incapacitated children who are in receipt of a partial rate of carer's allowance, but that are carrying out this work on a full-time basis; and if she will make a statement on the matter. [48364/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 434 and 435 together.

Carer’s Allowance is a payment to people on low incomes who are caring full-time for a person who needs support because of age, disability or illness (including mental illness). The rate of payment depends on the outcome of a means test. Carers for children under eighteen years of age may include guardians as well as parents.

As at the end of August 2022, there were 16,420 carers receiving the full rate of Carer's Allowance in respect of 18,635 children aged under eighteen. There were 11,591 carers receiving a half or reduced rate of Carer's Allowance in respect of 12,659 children aged under eighteen.

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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436. To ask the Minister for Employment Affairs and Social Protection the estimated annual cost to the Exchequer of introducing a policy in which the full rate of carer's allowance is paid to each parent in the country of an incapacitated child who is currently only receiving a partial rate of the carer's allowance payment, but is carrying out this work on a full-time basis; and if she will make a statement on the matter. [48365/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The key role of the Department of Social Protection is that of income support. The Department is charged with identifying where a person has an income support need and providing that income support, for example in the form of a jobseeker’s payment, a disability allowance, or a carer's allowance. 

The main income supports to carers provided by my Department are Carer’s Allowance, Carer’s Benefit, Domiciliary Care Allowance and the Carer’s Support Grant. Spending in 2022 is expected to amount to over €1.5 billion. 

The two principal conditions for receipt of Carer’s Allowance are that full time care and attention is required and being provided, and that the means test which applies is satisfied. Carer’s Allowance is primarily aimed at carers on low incomes who live with and look after certain people who need full-time care and attention.  

It is important to note that eligibility for Carer’s Allowance is not contingent on a particular disability or illness or the severity of disability or incapacity of the person being cared for.

The conditions attached to payment of Carer’s Allowance are consistent with the overall conditions that apply to social assistance payments generally. This system of social assistance supports provides payments based on an income need with the means test playing the critical role in determining whether or not an income need arises as a consequence of a particular contingency - be that illness, disability, unemployment or caring. The application of a means-test not only ensures that the recipient has an income need but also that scarce resources are targeted to those with the greatest need. 

Last year I made significant changes to the means test for Carer’s Allowance with the weekly income disregard for Carer’s Allowance increasing to €350 per week for single carers, and to €750 per week for a couple. I also an increased the capital disregard for carers from €20,000 to €50,000. The changes took effect in June and mean that many Carers on a reduced rate moved to a higher payment. In addition, Carers who up to now did not qualify for a payment due to means will be brought into the Carers Allowance system for the first time.

It is not possible to provide the estimated annual cost of providing a non means tested full rate of Carer’s Allowance in the circumstances outlined by the Deputy. While the Department can establish how many people are in receipt of a reduced payment and where Domiciliary Care Allowance is in payment, the Department of Social Protection has no administrative data on the level capacity/incapacity of the child. 

There are other income supports available for carers provided by the Department of Social Protection that are not means-tested; these include:

- The Carers Benefit payment is an entitlement based on social insurance contributions. Carer’s Benefit is a payment made to insured people who may be required to leave the workforce or reduce their working hours to care for a person(s) in need of full-time care. It is payable for a period of 2 years (104 weeks) for each care recipient and may be claimed over separate periods up to a total of 2 years (104 weeks).

- Domiciliary Care Allowance is a monthly payment for a child aged under 16 with a severe disability, who requires ongoing care and attention, substantially over and above the care and attention usually required by a child of the same age.  It is not means tested. As part of Budget 2023, I increased the Domiciliary Care Allowance rate by €20.50 to €330 per month with effect from January 2023.  There is no restriction on the number of children in respect of whom Domiciliary Care Allowance may be claimed. In other words, a person caring for more than one child who qualifies for Domiciliary Care Allowance may claim the monthly allowance for each child.

- The annual Carer’s Support Grant is available to all carers providing full-time care to a person with a disability or an older person, regardless of the carer’s means or social insurance contributions. The objective of the Carer’s Support Grant is to support carers in their caring role and carers may use the grant in a manner that is appropriate  to their needs. The grant is paid in respect of each person being cared for to take account of the additional cost of providing care and to recognise the particular challenges faced by these carers. As part of Budget Measures 2021, I increased the rate of the grant by €150.  The current rate of €1,850 came into effect from June 2021. The Carer's Support Grant is automatically paid to people in receipt of Carer's Allowance (full and reduced rates), Carer’s Benefit and Domiciliary Care allowance in June of each year.

Last week, as part of Budget 2023, I announced a further range of measures for carers including:

- A Cost of Living Double Payment to carers in October,

- A €500 Cost of Living payment for people receiving Carer’s Support Grant which will be paid in November,

- Carers will also receive the Christmas Bonus Double Payment in early December,

- A €12 increase in the maximum rate of Carer’s Allowance and Carer’s Benefit with effect from January 2023 with proportionate increases for people receiving a reduced rate,

- A €2 increase for each Qualified Child bringing rates to €50 for Over 12s and €42 for Under 12s from January 2023, and

- The Half-rate Carer’s Allowance will be disregarded in the means assessment for Fuel Allowance with effect from January 2023.

In addition, I also announced that, in respect of the Domiciliary Care Allowance, along with the rate increase above that this allowance will be available in respect of children with severe illness or disability who remain in hospital for up to six months after birth.

Finally, I can assure the Deputy that I will continue to keep the range of income supports provided to family carers by this Department under review and will ensure that consultations with carers' representative groups continue so that the overall objectives of the carer income support schemes provided are met. However, any further changes to the current supports provided by this Department would have implications for overall spending and could only be addressed in an overall budgetary context.

I trust this clarifies the matter for the Deputy.

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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437. To ask the Minister for Employment Affairs and Social Protection if she will take into account mortgage repayments in the means test system for the carer's allowance in cases in which the parent of a child who is incapacitated, is applying for the carer's allowance for their child on a full-time basis and they are providing this care in the home in which the mortgage is being repaid; her views on whether this would provide a more accurate and fairer representation of a household's day-to-day financial situation; and if she will make a statement on the matter. [48366/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The system of social assistance supports provides 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. 

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 Budget 2022, I announced significant improvements to the means test for Carer's Allowance, in recognition of the vital role that carers play in society.  

The general weekly income disregard for Carer's Allowance increased from June 2022 from €332.50 to €350 for a single person, and from €665 to €750 for a couple.  This will enable more carers with modest incomes to become eligible for the scheme, and those currently in receipt of a reduced payment may now receive a higher payment.

The capital disregard was also increased in June from €20,000 to €50,000 for Carer’s Allowance.  This will allow carers who have accumulated savings, often to provide care for a loved one, to retain an entitlement to Carer's Allowance.

Last week, as part of Budget 2023, I was pleased to announce a €12 increase in weekly payments from next January. This includes Carer's Allowance. I am also increasing the Qualified Child rate by €2 per week, and the Domiciliary Care Allowance will increase to €330 per month. Carers will also receive a once-off payment of €500 in November which will help families to meet household costs.

Introducing a rent or mortgage disregard for Carer's Allowance would have significant budgetary implications and would give rise to inconsistencies in how means tests are applied across schemes.  It would also significantly increase the complexity of the means assessment.  Any changes in this regard would have to be considered in the overall policy context. 

I trust this clarifies the matter for the Deputy.

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