Written answers
Tuesday, 9 July 2024
Department of Employment Affairs and Social Protection
Social Welfare Rates
Carol Nolan (Laois-Offaly, Independent)
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462. To ask the Minister for Employment Affairs and Social Protection to increase the weekly carer’s allowance income disregard to €1,250 (couples) and €625 (single carers) in Budget 2025, with a similar increase in Budget 2026 with the full abolition of the means test and the introduction of a family carer payment by 2027; and if she will make a statement on the matter. [29191/24]
Carol Nolan (Laois-Offaly, Independent)
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463. To ask the Minister for Employment Affairs and Social Protection to establish a family carer payment implementation group to oversee the development of the new payment; if she will accept that this should begin in 2024 and ensure that all practical issues regarding the implementation of the new payment for carers are addressed, including the transfer of secondary benefits (for example, carer’s GP card, carer's support grant, free travel), the full family carer payment awarded to those on half-rate carer’s allowance and legislation to protect the payment from exportability; and if she will make a statement on the matter. [29192/24]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 462 and 463 together.
The Government acknowledges the valuable 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 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 on these payments is expected to amount to over €1.7 billion this year.
The Carer’s Allowance scheme is the main scheme by which the Department provides income support to carers in the community. In 2024 the expenditure on the Carer’s Allowance scheme is estimated to be over €1.1 billion and there are currently 97,127 people receiving this payment. 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.
It is important to note that Carer’s Allowance is a financial support to people who cannot earn, or can only earn a limited income, due to their caring responsibilities and who have no other means or resources to rely upon. Removing the means test for Carer’s Allowance in its entirety would create a new universal social protection scheme for those meeting the scheme’s basic caring condition. Carer's Allowance does not purport to be a payment for care and I do not intend to deviate from the underpinning principle of Carer’s Allowance being an income support payment. As I have stated previously the provision of a payment for care is beyond the scope of my department.
Since my appointment as Minister, I have made a number of significant improvements to the means test for Carer's Allowance.
- In June 2022 the income disregards were 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 also increased from €20,000 to €50,000.
- Last month, the weekly income disregards were increased further, from €350 to €450 for a single person, and from €750 to €900 for carers with a spouse/partner.
These changes mean that carers on a reduced rate move to a higher payment. In addition, many carers who previously did not qualify for a payment due to their means are brought into the Carer's Allowance system for the first time.
The current means test disregards for Carer's Allowance are the highest in the Social Welfare system.
Notwithstanding these improvements, as part of Budget 2024, I established an Interdepartmental Working Group with the Department of Health and the Department of Children, Equality, Disability, Integration and Youth to examine and review the system of means test for carer's payments. This work is ongoing, and I have asked the Group to report to me on the matter in Quarter 3 of this year.
It is also important to acknowledge that there are a range of other supports for carers provided by my department which are not based on a means assessment.
- The Carer’s Support Grant can be claimed by carers regardless of their means or social insurance contributions. I increased this grant to €1,850, its highest ever rate.
- Carer's Benefit is a weekly payment based on social insurance contributions rather than a means test and is payable for a period of up to 2 years.
- Domiciliary Care Allowance is payable to a parent or guardian in respect of a child who has a severe disability and requires continual or continuous care and attention substantially over and above the care and attention usually required by a child of the same age. As part of Budget 2024 we have increased the payment by another €10 bringing it to €340 per month.
I trust that this clarifies the issue for the Deputy.
Carol Nolan (Laois-Offaly, Independent)
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464. To ask the Minister for Employment Affairs and Social Protection if she agrees that the rate of carer’s allowance and carer’s benefit should be increased to €325 in recognition of the significant and unavoidable costs of care faced by caring families; and if she will make a statement on the matter. [29193/24]
Carol Nolan (Laois-Offaly, Independent)
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468. To ask the Minister for Employment Affairs and Social Protection if she will support the request of an organisation (details supplied) to increase the carer's allowance to €325; and if she will make a statement on the matter. [29206/24]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 464 and 468 together.
The Government acknowledges the valuable 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 main income supports to carers provided by my department include Carer's Allowance, Carer's Benefit, Domiciliary Care Allowance, and the Carer's Support Grant. Spending on these payments in 2024 is expected to exceed €1.7 billion.
Carer’s Allowance and Carer’s Benefit are financial supports to people who cannot earn, or can only earn a limited income, due to their caring responsibilities. They are not payments for caring.
Since my appointment as Minister, I have made a number of improvements to the payments for carers.
- In 2021, I increased the annual Carer’s Support Grant to €1,850, the highest rate since its introduction. The Carer's Support Grant is automatically paid to people in receipt of Carer's Allowance, Carer’s Benefit and Domiciliary Care allowance. Other carers not in receipt of a carer’s payment may also be eligible for the Grant. On Thursday 6 June some 132,523 carers received the grant in respect of 149,361 care recipients, at an estimated cost of €275 million.
- Weekly carer's payments have increased by €29 over the last three Budgets.
- The monthly Domiciliary Care Allowance payment has increased by €30.50 to its current rate of €340 per month since January 2023.
- In June 2022 the income disregards were 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 also increased from €20,000 to €50,000.
- In June the weekly income disregard was further increased from €350 to €450 for a single person, and from €750 to €900 for carers with a spouse/partner.
These changes mean that carers on a reduced rate move to a higher payment. In addition, many carers who previously did not qualify for a payment due to their means are brought into the Carers Allowance system for the first time.
In acknowledgement of the particular challenges faced in light of the current cost of living crisis, significant Cost-of-Living lump sum payments have been provided for carers including:
- €400 for people receiving Carer’s Support Grant paid in November 2023 supporting 120,000 family carers;
- A cost-of-living double payment in December and a further double payment at the end of January.
By way of comparison, for Jobseeker’s Allowance, the maximum weekly rates range from €141.70 to €232, depending on the age of the recipient. The Disability Allowance maximum weekly rate is €232.
To raise the rates to €325, as the Deputy suggests, would be a 31 percent increase. This would have significant budgetary implications and would give rise to inconsistencies in how rates of payment are applied across other social protection schemes. It would also diminish the level of supports available to other areas given that the availability of resources is finite.
I am committed to supporting our family carers and I will continue to keep the range of supports provided by my department under review. However, any changes, such as further increases to the rates, would have to be considered in an overall budgetary and policy context.
I trust this clarifies the matter for the Deputy.
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