Written answers

Tuesday, 3 October 2023

Department of Employment Affairs and Social Protection

Social Welfare Code

Photo of Michael LowryMichael Lowry (Tipperary, Independent)
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420. To ask the Minister for Employment Affairs and Social Protection if she can confirm when the income limit for the carer's allowance means test was last reviewed by her Department; if she is aware that the current income limit appears to be excessively restrictive, particularly in light of recent wage increases aimed at offsetting the significant rise in the cost of living, including the substantial increase in mortgage interest rates (details supplied); if she will give serious consideration to raising the income threshold to a more realistic level, or even consider abolishing the income threshold for carers; and if she will make a statement on the matter. [42489/23]

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 income supports provided by my department are kept under constant review. Since my appointment as Minister, I have made a number of significant improvements within the social welfare system to enhance the supports available for our carers.

The income and capital disregards for Carer's Allowance were last increased in Budget 2022. 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 highest income disregards in the social welfare system and mean that, in the case of a couple, earnings of up to €41,500 a year are disregarded.

Removal of the means assessment for Carer’s Allowance, as the Deputy suggests, would change the scheme from a targeted income maintenance support for those most in need to a new universal social protection scheme for those meeting the scheme’s basic caring condition. This would give rise to a very significant annual cost.

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 annual Carer's Support Grant - which I increased to its highest-ever rate of €1,850 - is also available to carers who are not on a social welfare payment.

As part of Budget 2023, I announced a range of measures directly benefitting family carers. These included:
  • 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.
Significant Cost-of-Living lump sum payments were also provided for carers. These included:
  • Double Payments last October and December.
  • €500 for people receiving Carer’s Support Grant paid in November 2022 and a further Cost of Living lump sum payment of €200 was paid to Carers in April 2023.
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.

I trust this clarifies the matter for the Deputy.

Photo of Eoin Ó BroinEoin Ó Broin (Dublin Mid West, Sinn Fein)
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421. To ask the Minister for Employment Affairs and Social Protection if her Department has considered extending benefits available to married couples following the loss of a spouse, to couples in long-term relationships but who are not married; and if she will make a statement on the matter. [42560/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Claimants with cohabiting partners are recognised within the social welfare system as having additional needs in cases where their cohabiting partner is financially dependent upon them. The payment of an Increase for a Qualified Adult (IQA) in addition to the personal rate of payment reflects these additional household needs.

The IQA is payable in respect of a person who is wholly or mainly maintained by the primary claimant, subject to a means test, regardless of whether the couple are married or not. Where one member of a cohabiting couple claims a means-tested social assistance payment, their partner's income is taken into account in the means test.

As per social welfare legislation the Widower's or Surviving Civil Partner’s Contributory or the Non-Contributory Pension are not payable to surviving cohabiting partners who have not entered into marriage or a civil partnership with the person they were cohabiting with. Entering into a marriage or civil partnership is a legal act, which confers both rights and obligations on both parties that do not exist in law between cohabiting couples.

The legal context governing relationships such as marriage is regulated by the Minister for Justice.

Aside from the wider legal issues regarding the status of marriage and civil partnerships, which is a much broader policy area than its implications for the income support schemes of my Department, extending the current provisions to people who have not undertaken equivalent legal obligations would carry significant cost implications.

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