Written answers
Wednesday, 20 September 2023
Department of Employment Affairs and Social Protection
Social Welfare Schemes
Robert Troy (Longford-Westmeath, Fianna Fail)
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637. To ask the Minister for Employment Affairs and Social Protection if she will review the means test for carers allowance to take into account certain expenses such as rent or mortgage payments. [40216/23]
Heather 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.
As part of Budget 2022, 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. As a result, Carer's Allowance disregards are the highest income disregards in the entire social welfare system.
The capital disregard for Carer’s Allowance was also increased in 2022 from €20,000 to €50,000. This allows carers who have accumulated savings, often to provide care for a loved one, to retain an entitlement to Carer's Allowance.
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.
Robert Troy (Longford-Westmeath, Fianna Fail)
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638. To ask the Minister for Employment Affairs and Social Protection if she has plans to review the qualifying criteria for fuel allowance. [40217/23]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The Fuel Allowance is a payment of €33 per week for 28 weeks (a total of €924 each year) from late September to April, at an estimated cost of €412 million in 2023. The purpose of this payment is to assist these households with their energy costs. Only one allowance is paid per household.
The criteria for Fuel Allowance are framed in order to direct the limited resources available to my Department in as targeted a manner as possible. To qualify for the Fuel Allowance payment, a person must satisfy all the qualifying criteria. This ensures that the Fuel Allowance payment is targeted at those who are more vulnerable to fuel poverty, including those reliant on social protection payments for longer periods and who are unlikely to have additional resources of their own.
As part of the overall welfare Budget 2023 package of €2.2 Billion, a number of considerable reforms were made to the Fuel Allowance Scheme including the introduction of changes for those aged over 70. These reforms included removing the requirement for those aged over 70 to be in receipt of a qualifying social protection payment. I also introduced a new means threshold for those aged over 70 of €500 for a single person and €1,000 for a couple.
The Government will continue to monitor the cost-of-living situation closely and how it can support people on low incomes and those on social welfare payments who are at risk of fuel poverty. However, any further changes to the criteria for accessing the fuel allowance scheme can only be considered while taking account of the overall policy and budgetary situation.
Finally, my Department provides Additional Needs Payments as part of the Supplementary Welfare Allowance scheme for people who have an urgent need, which they cannot meet from their own resources. These payments are available through our Community Welfare Officers.
I hope this clarifies the matter for the Deputy.
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