Written answers

Tuesday, 23 May 2023

Department of Employment Affairs and Social Protection

Social Welfare Code

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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127. To ask the Minister for Employment Affairs and Social Protection if her Department will review the PRSI contributions system in order that adult dependents who have worked in the home may be entitled to full future social welfare benefits, such as the recent €200 cost-of-living support payment; if she will provide a full explanation for the reason that adult dependents and others with insufficient PRSI contributions who have worked in the home were not entitled to the recent €200 cost-of-living support payment; and if she will make a statement on the matter. [24440/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The €200 Spring lump sum payment was paid to 1.3 million recipients in receipt of long-term social welfare payments. This lump sum was paid in late April and cost approximately €261 million.

This support was paid on a similar basis to the Christmas Bonus, including to those on jobseeker's payments or Illness Benefit for over 12 months; with the addition of recipients of the Working Family Payment.

The payment was made to primary recipients of a qualifying payment only.

It is part of a range of additional Cost of Living supports, valued at over €400 million, announced in February, following on from the largest Social Protection Budget in the history of the state last September. Other supports will include a €100 Child Benefit lump sum in June and a once-off €100 increase Back to School Clothing and Footwear Allowance.

The Increase for a Qualified Adult can be awarded to a person whose spouse/civil partner/co-habitant is being wholly or mainly maintained by them, and where that qualified adult’s personal means do not exceed a means test income limit, based on the means held solely or jointly by the qualified adult.

If a person does not qualify for a social insurance payment based on their PRSI contributions, they may qualify for a means-tested social assistance payment.

Any proposal to extend full social welfare benefits, to include such cost of living support payments, to adult dependents would have to be considered in a budgetary context with a view to the sustainability of the Social Insurance Fund.

I trust this clarifies matters for the Deputy.

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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128. To ask the Minister for Employment Affairs and Social Protection if she will advise on her Department's review of means testing for carer's allowance; and if she will make a statement on the matter. [24667/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Government recognises the important role that family carers play in Irish society and is fully committed to supporting them through a range of payments and services.

Means tests in my Department are kept under regular review and a number of significant changes have been made in recent years. In particular, I have introduced a number of changes to means testing which provide for higher income disregards. These disregards ensure that, where people are in receipt of a social assistance payment and are working, a certain level of income from that work is not assessed in the means test.

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 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 is satisfied.

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.

In responding to the representations from representative organisations and the voices of family carers, significant changes were made to the Carer’s Allowance means test as part of Budget 2022.

  • The capital and savings disregard for the Carer’s Allowance means assessment was increased from €20,000 to €50,000, aligning it with that which applies for Disability Allowance.
  • 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 changes came into effect on 2 June 2022. As a result, Carer's Allowance disregards are the highest income disregards in the entire social welfare system.

The Carer’s Support Grant is an annual payment for carers who look after people in need of full-time care and attention. The grant is paid in a single annual lump sum, which is not means-tested and is not taxable. It is paid in respect of each care recipient. The Grant is currently paid at a rate of €1,850 per year, which is the highest rate at which it has been paid since it was first introduced in 1999.

As part of Budget 2023, I announced a range of measures directly benefiting family carers, particularly in light of the current cost of living crisis, including payment of a €500 lump sum to Carers in November.

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

Photo of Pádraig O'SullivanPádraig O'Sullivan (Cork North Central, Fianna Fail)
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129. To ask the Minister for Employment Affairs and Social Protection if she will give consideration to removing the means test for carer's allowance or to increasing the carer's allowance income threshold given the significant increase in the cost of living; and if she will make a statement on the matter. [24157/23]

Photo of Heather HumphreysHeather 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 key role of my department is to provide income supports where an income need may arise due to unemployment, illness/disability and caring responsibilities. The payments provided are an income support to people who cannot earn, or can only earn a limited income, and who have no other means or resources to rely upon.

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.

Removal of the means assessment for Carer’s Allowance, as the Deputy proposes, would change the scheme from a targeted income maintenance support for those most in need to a new universal social protection scheme. This would give rise to a very significant annual cost and could only be considered within a wider budgetary context.

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:

  • 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 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.
The Carer's Allowance disregards are the highest income disregards in the social welfare system.

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 €200 lump sum payment for those in receipt of long-term payments, including carers, in April 2023.
  • 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.
In addition to Carer's Allowance, my department also provides a non-means tested payment to those carers who have to leave the workforce or reduce their hours in the form of Carer’s Benefit. 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. 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. I would like to point out to the Deputy that next Thursday some 141,000 Carer's Support Grants will be paid to approximately 126,000 family carers.

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. Changes to any of the schemes on foot of this review will only be done in the context of ensuring the most effective and targeted use of public funds that are required to provide income support on a broad societal level.

I trust this clarifies the matter for the Deputy.

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