Written answers
Tuesday, 5 November 2024
Department of Employment Affairs and Social Protection
Social Welfare Benefits
Donnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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644. To ask the Minister for Employment Affairs and Social Protection further to Parliamentary Question No. 342 of 8 October 2024, to confirm that the high scenario cost estimate of €2 billion is based on 201,600 carers (70% of those who self-reported in Census 2022) being eligible for carer’s allowance in the absence of the means-test; and if not, the number the high scenario is based on. [44186/24]
Donnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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645. To ask the Minister for Employment Affairs and Social Protection further to Parliamentary Question No. 342 of 8 October 2024, to confirm that the high scenario cost estimate of €2 billion is the resulting total cost of the carer’s allowance scheme if the removal of the means-test resulted in 70% of self-reports in the Census 2022 carers being eligible for carer's allowance; and the additional cost (in numbers of millions) of the high scenario once the 'no policy change' estimated expenditure on the carer’s allowance scheme is subtracted. [44187/24]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 644 and 645 together.
Estimating the abolition of a means test is difficult and any such estimate is by definition high level and as such should be treated with caution as the actual outcome may be quite different. The key questions in any estimate of the additional cost if the means test was to be abolished are how many additional carers would qualify for a payment and at what payment rate.
For the purpose of the high level estimate below the more recent CSO Census data from 2022, which showed 299,000 people who “self-declared” on the census form as providing unpaid care at that time. This has been used to estimate a number in the order of about 351,000 self-declared carers for 2025. This is based on extrapolating the increase reported in the census period 2016 – 2022 forward by three years or an additional 17,333 Carers per annum. This approach means that there is potentially about 254,000 people not currently in receipt of a payment who might apply for a payment once the means test condition is removed. (i.e. the total estimated for 2025 of 351,000 minus the 97,250 carers already in payment).
The question then arises as to how many of these carers would qualify for a Carers’ payment. It is difficult to assess how many of the estimated ‘additional’ 254,000 carers might qualify but if we assume 70% would qualify then it is estimated that a further 178,000 people would qualify for a payment. This gives rise to an additional cost in the order of €2 billion, at current average payment rates over and above the current expenditure on Carer’s Allowance.
Donnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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646. To ask the Minister for Employment Affairs and Social Protection to outline, noting the requirement to provide over 35 hours of care to qualify for carer’s allowance, the estimated additional cost of running the scheme if the payment were to be extended to all those who have self-declared in Census 2022 to be providing 15 hours care or more per week. [44191/24]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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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 is a means-tested payment for people living in Ireland who are looking after someone who needs full-time support because of age, physical or learning disability or illness, including mental illness. The primary objective of the Carer’s Allowance payment is to provide an income support to carers whose earning capacity is substantially reduced as a consequence of their full-time caring responsibilities and in so doing to support the ongoing care of the person in respect of whom care is being provided.
As set out in primary legislation for both the Carer’s Allowance and Carer’s Benefit payments, the person being cared for must be so incapacitated as to require full-time care and attention and be likely to require this full-time care and attention for at least 12 months. A carer will be regarded as providing full-time care and attention to a relevant person, where the number of hours providing such care is not less than 35 hours in a period of 7 consecutive days, and care is provided on any 5 days, whether consecutive or not, within a period of 7 consecutive days. These supports are not designed for the provision of part-time care.
There are currently 97,366 people in receipt of Carer's Allowance and the estimated spend on this payment in 2024 is over €1.1 billion. The estimated spend on Carer’s Benefit this year is an additional €57.9 million.
According to Census 2022, there were 161,529 people who self-declared as caring for someone for over 15 hours per week. The estimated additional annual cost of extending the Carer’s Allowance and Benefit schemes to this cohort is €878.6 million.
This costing is based on the current rate of Carer’s Allowance of €248 for those aged under 66 and caring for 1 person and assumes that this cohort would meet all other scheme eligibility requirements for both carer and caree.
It is important to note that these costings are estimates based on current administrative data. They take no account of year-on-year increases in terms of recipients or increases in rates of payment.
The extension of the Carer’s Allowance payment to those providing part-time care, as proposed, would have implications for overall spending and as such could only be considered in an overall policy and Budgetary context.
I trust that this clarifies the issue for the Deputy.
Donnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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647. To ask the Minister for Employment Affairs and Social Protection the cost of increasing the rate of carer’s allowance by €10 for every 10,000 additional eligible recipients, based on the average blended cost based on the existing profile. [44192/24]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The cost of a €10 increase, for all recipients, is €39.76 million. The costs are on a full year basis and are based on the estimated number of recipients in 2025.
The breakdown is as follows:
Scheme | Cost, million |
---|---|
Carer's Allowance Under 66yrs: | €26.63 |
Carer's Allowance 66yrs or Over: | €0.94 |
Half Rate Carer's Allowance Under 66yrs: | €7.42 |
Half Rate Carer's Allowance 66yrs or Over: | €4.76 |
The estimated cost per 10,000 CA recipients in 2025 is €124.7m. An additional €10 increase for 10,000 additional recipients gives an adjusted cost of €129.9m per 10,000 CA recipients in 2025.
It should be noted that these costings are subject to change in the context of emerging trends and associated revision of the estimated numbers of recipients for 2025.
I trust this clarifies matters for the Deputy.
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