Written answers
Thursday, 27 February 2025
Department of Employment Affairs and Social Protection
Social Welfare Eligibility
Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
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94. To ask the Minister for Employment Affairs and Social Protection for an update on the programme for Government's commitment to significantly increase the income disregards for carer’s allowance in each budget, with a view to phasing out the means test during the lifetime of this Government; and if he will make a statement on the matter. [8319/25]
Dara Calleary (Mayo, Fianna Fail)
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The Carer’s Allowance is the main scheme by which my department provides income support to carers in the community. There are currently 98,311 people in receipt of Carer's Allowance. Expenditure on the scheme in 2025 is estimated to be over €1.24 billion. Of course, there are other supports for carers provided by the Department of Social Protection which are not based on a means assessment. These include the Carer’s Support Grant, Carer’s Benefit and Domiciliary Care Allowance.
The primary objective of the Carer’s Allowance payment is to provide an income support to people whose earning capacity is substantially reduced. In the case of other payments that may be because the person is ill or disabled or becomes unemployed. In the case of Carer’s Allowance, it is because the person cannot work full-time due to their caring responsibilities.
Carer's Allowance is not designed to be a payment for the work of caring.
There have been a number of significant improvements made to the income thresholds in the means test in recent years. As part of Budget 2025, the weekly income disregard will increase from €450 to €625 for a single person, and from €900 to €1,250 for carers with a spouse or partner.
An Interdepartmental Working Group with the Department of Health and the Department of Children, Equality, Disability, Integration and Youth was established last year to examine and review the system of means testing for carer payments. I expect to receive the report on its findings in the coming weeks.
The elimination of the means test gives rise to estimated costs running from a minimum of €600m per annum out to a potential €3bn per annum. That is why the Programme for Government has set out a timeline which commits to significantly increasing the income disregards for Carer’s Allowance in each Budget with a view to ultimately phasing out the means test during the lifetime of the Government. It is a journey.
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