Joan Collins (Dublin South Central, Independents 4 Change)
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110. To ask the Minister for Employment Affairs and Social Protection if a ‘cost-of-disability’ payment will be introduced in Budget 2025 (details supplied). [53989/23]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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My department provides a suite of income supports to those who cannot work due to illness or disability. It is important to note that eligibility for these payments is generally not dependent on the type of the illness or disability but on the extent to which a particular illness or disability impairs or restricts a person’s capacity to work. My department also provides a range of employment supports for disabled people who want to work or who are working.

The Indecon Cost of Disability report identified that additional costs of disability run across many areas of expenditure, including housing, transport, health, and education.

The report did not propose a Cost of Disability payment. It found that the cost of disability is significantly broader than income supports and there is not a single, typical cost of disability. Rather, there is a spectrum from low to high additional costs of disability, depending on individual circumstances.

The report concluded that disability payments should be targeted to those most in need and who face the greatest additional cost of disability rather than spreading resources thinly.

I am committed to addressing the cost of disability and improving outcomes for people with a disability. I announced a suite of measures to support disabled people in Budget 2024. I am not in a position to comment on Budget 2025 at this time.

However, despite the measures in the recent budget, there is still a need to reform our system of disability payments. In September, I published the Green Paper on Disability Reform to begin the conversation about improving these supports and further addressing the cost of disability.

The aim of the Green Paper is two-fold. Firstly, it aims to support a higher level of employment for people with disabilities, which will improve their outcomes; and secondly, to better insulate disabled people who cannot work from poverty and deprivation.

The Paper’s key proposal is to introduce a new long-term disability payment that has three tiers of payment with associated employment supports.

This takes into consideration the recommendations of the Cost of Disability report, which found that income supports should be differentiated by need and that government policy should facilitate employment among those who can work.

The Green Paper is not a cost cutting measure. Based on a conservative estimate, the Green Paper proposals, if introduced, would increase spending by more than €130 million per year.

Nobody will lose their payment or have their payment reduced. The objective is to increase people’s payments and provide more employment supports for those who can and want to work.

I would like to emphasise that the Green Paper is not a final design. It is only a starting point for a structured discussion on what the future of long-term disability payments could look like. It offers one possible approach on how to target limited resources - its proposals are intended to invite discussion, debate and suggestions.

I encourage all those with an interest to express their views in our public consultation by making a submission. It is essential that we hear from as many disabled people and representatives as possible. We would like to hear what people like and don't like about the proposals and suggestions of how they could be improved or replaced with alternatives. I have extended the consultation period until 15 March 2024.

I trust this clarifies the matter for the Deputy.

Aindrias Moynihan (Cork North West, Fianna Fail)
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111. To ask the Minister for Employment Affairs and Social Protection when details on the carer’s pension will be available; and if she will make a statement on the matter. [54185/23]

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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118. To ask the Minister for Employment Affairs and Social Protection if she will outline the specifics regarding the pension entitlements being worked on for carers by her Department presently if she will outline the specifics regarding the pension entitlements being worked on for carers by her Department presently; and if she will make a statement on the matter. [53598/23]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 111, 118 and 148 together.

This Government acknowledges the important role that carers play and is fully committed to supporting them in that role. Accordingly, the current State Pension (Contributory) system provides measures including PRSI credits, Homemaking Disregards and HomeCaring Periods to recognise caring periods of up to 20 years outside of paid employment in the calculation of a payment rate.

Last September, I announced a series of landmark reforms to the State Pension system. The measures are in response to the Pensions Commission’s recommendations and represent the biggest ever structural reform of the Irish State Pension system.

One of the key pension reform measures announced is the introduction of enhanced State Pension provision for people who have been caring for incapacitated dependents for 20 years or more. It will do this by attributing the equivalent of paid contributions to such long-term carers to cover gaps in their contribution record for the periods that they were caring for an incapacitated dependent.

The measure will be available to individuals who reach State Pension age from 1 January 2024 and will also be available to people currently over pension age. They will be able to apply for these contributions and receive a State Pension (Contributory) or enhanced pension from 1st January 2024 where eligible.

In September, my Department launched an online system for people to register for long term caring contributions. This will facilitate the expeditious processing of these contributions upon enactment of the legislation.

I was very pleased to introduce the legislation to give effect to these measures in the Dáil last month and I expect the legislation to be enacted by the end of the year.

I trust this clarifies the matter for the Deputies.