Seán Sherlock (Cork East, Labour)
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44. To ask the Minister for Employment Affairs and Social Protection her proposals to review the means test for the carer’s allowance. [5994/23]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The Government acknowledges the important role that family carers play and is fully committed to supporting carers in that role. This commitment is recognised in both the Programme for Government and the National Carers’ Strategy.

The role of my department is to provide income supports where there is an income need.

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 2023 is expected to amount to almost €1.6 billion on these payments.

The two principal conditions for receipt of Carer’s Allowance are that full time care and attention is required and provided, and that a means test is satisfied. The application of the 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.

As part of Budget 2022, I introduced significant improvements to the means test for Carer's Allowance. These were the first changes to the means test in 14 years:

- The capital and savings disregard for the Carer’s Allowance means assessment was increased from €20,000 to €50,000, aligning it with the capital means test for Disability Allowance.

- For carers who work, the weekly income disregard was increased from €332.50 to €350 for a single person, and from €665 to €750 for carers with a spouse/partner.

The current Carer's Allowance disregards are the most generous income disregards in the social welfare system and mean that, in the case of a couple, earnings of up to €39,000 a year are disregarded.

In addition to Carer's Allowance, my department also provides a non-means tested payment to carers in the form of Carer’s Benefit. Furthermore, the Carer's Support Grant - which I increased to its highest-ever rate of €1,850 - is available to carers who are not on a social welfare payment. For those providing ongoing care and attention for a child aged under 16 with a severe disability, Domiciliary Care Allowance is available and is also not means-tested.

More recently, as part of Budget 2023, I announced a range of measures directly benefitting family carers, particularly in light of the current cost of living crisis. These include:

- A Cost of Living Double Payment to carers paid in October.

- A €500 Cost of Living payment for people receiving Carer’s Support Grant paid in November.

- Carers received the Christmas Bonus Double Payment in December.

- A €12 increase in the maximum rate of Carer’s Allowance and Carer’s Benefit took 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.

- The Half-rate Carer’s Allowance is now disregarded in the means assessment for Fuel Allowance since January 2023.

- Domiciliary Care Allowance increased by €20.50 to €330 per month with effect from January 2023.

- Domiciliary Care Allowance is now available in respect of children with severe illness or disability who remain in hospital for up to six months after birth.

Notwithstanding the increased level of support already in place for carers, I have asked my department to keep these measures under review as part of the annual budgetary process.

Finally, I have committed to a carrying out a broad review of means testing this year which will include Carer's Allowance means test provisions.

I trust this clarifies the matter for the Deputy.