Carol Nolan (Laois-Offaly, Independent)
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465. To ask the Minister for Employment Affairs and Social Protection if she will support the proposal that the carer’s allowance means test should be based on net, not gross, income, in line with the assessment of earnings under carer’s benefit which is based on earnings less income tax, USC, PRSI, superannuation (pension payments), pension levy, union dues, subscriptions to friendly societies and health insurance premiums; and if she will make a statement on the matter. [29194/24]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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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.

Carer's Benefit is a payment made to insured people who leave the workforce to care for someone in need of full-time care and attention. It is not means tested. A person can earn €450 or less a week after taxes. The Carer’s Benefit income limit increased by €100, from €350 to €450 per week from June. It is payable for a maximum period of 104 weeks for each person being cared for. Where care is provided beyond this period, the means tested Carer’s Allowance is available for those who are in need of income support.

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.

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. The use of means tests in the social welfare system is a method of targeting scarce resources to those that have most need.

Means assessments take both income and capital (such as savings, investments and property other than the family home) into consideration. For social assistance schemes, income and capital belonging to the claimant and his or her partner, where applicable, is generally assessable for means assessment purposes. In line with most social assistance payments, deductions are made for Carer's Allowance such as Employees PRSI, union dues, superannuation (pension contributions) and a travel allowance if not being paid a travel allowance by the employer.

If net rather than gross income was assessed for Carer's Allowance, it would mean that changes in tax rates or tax reliefs could change the claimant’s rate of Carer’s Allowance. In addition, to deduct other outgoings as suggested, such as subscriptions to friendly societies and health insurance premiums, would significantly increase the complexity of the means assessment.

Such a change would also have significant budgetary implications and would give rise to inconsistencies in how means tests are applied across schemes.

It is worth noting that 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.

• 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.
• 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.