Pauline Tully (Cavan-Monaghan, Sinn Fein)
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33. To ask the Minister for Employment Affairs and Social Protection if she plans to increase the income disregards and earnings thresholds for disability allowance and carer’s allowance; and if she will make a statement on the matter. [37671/24]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Disability Allowance and Carers' Allowance payments are part of the system of social assistance supports that provide 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 unemployment, disability or caring. This ensures that resources are targeted to those who need them most.

Since my appointment as Minister for Social Protection, supporting people with disabilities and carers has been a key priority for me. In this context I have already made improvements to the income disregards in relation to both schemes.

With regard to Disability Allowance, Budget 2023 was the third successive budget that the Government progressively increased earnings disregards, which will see people with disabilities retaining more of their payments while in employment. The earnings disregard for recipients of Disability Allowance has increased by almost 38% over these budgets from €120 to €140 to €165 currently.

This means that a person in employment can earn up to €165 per week and retain all of their Disability Allowance payment. Fifty per cent of earnings between €165 and €375 is also disregarded for the purpose of the means test and a person can now earn a maximum of €505.10 per week and still keep a portion of their Disability Allowance payment.

Budget 2022 saw the first changes to the means test for Carers’ Allowance in 14 years when 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 Carers' Allowance means assessment was also increased from €20,000 to €50,000. It is important to note that this equates to €100,000 in the case of a couple.

As part of Budget 2024, and with effect from June this year, the weekly income disregards were further increased from €350 to €450 for a single person, and from €750 to €900 for carers with a spouse/partner.

Since June 2022, this amounts to cumulative increases to the income disregards of €117.50 for a single carer and €235.00 for a carer who is part of couple. These are the highest disregards in the Social Welfare system.

These recent changes to the means test have enabled more carers on a reduced rate to move to a higher payment. Additionally, many carers who previously did not qualify for a payment due to their means have been brought into the Carer's Allowance system for the first time.

I will continue to keep the range of supports available to people with disabilities and carers under review. However, any changes or improvements to these supports can only be considered in an overall budgetary context.

I hope this clarifies the matter for the Deputy.