Written answers

Wednesday, 20 September 2023

Department of Employment Affairs and Social Protection

Social Welfare Schemes

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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611. To ask the Minister for Employment Affairs and Social Protection the reason carer's allowance was terminated in the case of a person (details supplied); and if she will make a statement on the matter. [39577/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Carer's Allowance (CA) is a means-tested social assistance payment made to a person who is habitually resident in the State and who is providing full-time care and attention to a child or an adult who has such a disability that, as a result, they require that level of care.

One of the qualifying conditions for CA is that the means of the person concerned must be less than the statutory limit.

Means are any income belonging to the Carer and their spouse / civil partner / cohabitant; property (except their own home); or an asset that could bring in money or provide them with an income (for example, occupational pensions, or pensions or benefits from another country).

The person concerned was awarded Carer's Allowance from 28 May 2020.

Once claims are in payment, the Department periodically reviews them to ensure that there is continued entitlement. Following a means review in November 2020, the weekly rate of CA in this case was reduced due to an increase in household means.

On 9 February 2021, my Department received another application for CA from the person concerned in respect of a different care recipient. This application was refused on 19 March 2021 as the required information was not supplied. A review of this decision was sought and was carried out and the customer was informed by letter on 28 April 2021 that the decision remained unchanged.

Following a further means review in November 2021, it was determined that the household means of the person concerned had increased further and that there was no longer an entitlement to CA. A review of this decision was requested, and the Deciding Officer decided that the means still exceeded the statutory limit and that, consequently, there would be no change to the original decision. The person concerned was notified of this decision on 11 January 2022 and of their right to appeal.

Following another request for review on 31 May 2022, a final response issued from the Department stating that a new means assessment was carried out on 2 June 2022 when the new Budget disregard came into effect. The position remained that the household income was assessed as being in excess of the statutory limit. The person concerned was notified of this on 27 June 2022.

If the person concerned wishes to make a new application, they should complete and return an application form (CR1) to Carer's Allowance Section as soon as possible in order for the Department to determine any entitlement to CA.

Accordingly, I have arranged for an application form to issue.

I hope this clarifies the position for the Deputy.

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
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612. To ask the Minister for Employment Affairs and Social Protection for clarification on a matter (details supplied); and if she will make a statement on the matter. [39584/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The State Pension (Contributory) system currently gives significant recognition to those whose work history includes an extended period of time outside the paid workplace, often to raise families or in a full-time caring role. PRSI Credits, Homemaking Disregards and HomeCaring Periods recognise caring periods of up to 20 years outside of paid employment in the calculation of a payment rate. Since April 2019, State Pension (Contributory) applications are assessed under all possible methods with the most beneficial payment rate paid to the applicant.

Despite the existing measures within the State Pension system that recognise periods spent caring, some long-term carers of incapacitated dependents may still face barriers in accessing the State Pension (Contributory). They may for example have difficulty establishing the minimum number of 10 years' paid contributions.

Consequently in 2022 I announced a series of landmark reforms to the State Pension system to enhance State Pension provision for people who have been caring for incapacitated dependents for over 20 years. It will do this by attributing the equivalent of paid contributions to long-term carers to cover gaps in their contribution record.

The Long-Term Carer's Contributions (LTCC) will be available to those who provided full time care to incapacitated dependents for 20 years (1040 weeks) or more. The periods of care-giving do not need to be consecutive. I expect to bring the legislation required to introduce the LTCC before the Oireachtas soon, with the scheme being fully implemented from January 2024. This month my Department launched an online system for people to register for LTCC. This will facilitate the expeditious processing of LTCC upon enactment of the legislation.

Further information in relation to the State Pension changes can be obtained on the Department's website: gov.ie/pension

I hope this clarifies the matter for the Deputy.

Photo of Danny Healy-RaeDanny Healy-Rae (Kerry, Independent)
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613. To ask the Minister for Employment Affairs and Social Protection if she will give consideration to an issue (details supplied); and if she will make a statement on the matter. [39620/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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One of the landmark reforms to the State Pension system that I announced last September is a ten-year phased transition to the Total Contributions Approach and the abolition of the Yearly Average method, as recommended by the independent Pensions Commission following its in-depth analysis of the State pension system.

During a transition period, individual pension rates will be based on the best of the Total Contributions Approach, or a rate based on a mix of the Yearly Average and Total Contributions Approaches, with the proportion accounted for by Yearly Average reducing from 90% to zero over 10 years and the proportion accounted for by the Total Contributions Approach increasing commensurately.

This fairer system, which removes existing anomalies with the Yearly Averaging system, will calculate pension payments based on the number of social insurance contributions made by a person over his or her working life, with significant pension credits granted to people who have taken time out of the workplace for caring responsibilities.

Officials in my Department are currently working on the legislation and systems to support the introduction of the ten-year phased transition to the Total Contributions Approach and the abolition of the Yearly Average method, which will begin from 1 January 2025.

I hope this clarifies the matter for the Deputy.

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