Mairéad Farrell (Galway West, Sinn Fein)
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195. To ask the Minister for Employment Affairs and Social Protection if carer’s allowance is an income or an allowance; if clarified as an income, the reason it is not subject to minimum wage legislation; or if clarified as an allowance the reason it is subject to tax; and if he will make a statement on the matter. [17272/26]

Dara Calleary (Mayo, Fianna Fail)
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My department provides a comprehensive package of carers’ income supports including Carer’s Allowance, Carer’s Benefit, Domiciliary Care Allowance and the Carer’s Support Grant. Combined spending on these payments in 2026 is estimated at over €2.2 billion.

The Carer’s Allowance is the main scheme by which my department provides income support to carers. Expenditure on Carer’s Allowance in 2026 is estimated to exceed €1.4 billion. There are currently more than 105,000 carers receiving this payment.

Carer’s Allowance is means-tested, does not require social insurance contributions, and is designed to target support to those most in need. The purpose of the scheme is to financially support people whose capacity to work is significantly reduced because of their full-time caring responsibilities. It is a payment is for people who are providing full time care to people who are in need of such care. It is an income support payment. It is not, and was never intended to be, a payment for caring.

In order to satisfy the full time care requirement a person must be providing care for at least 35 hours per week. However, that is not to suggest that the payment is paid at an hourly rate - it is not. It is a weekly income support payment like many others and not a wage; it is not appropriate to compare the rate of payment with the National Minimum Wage.

People in receipt of Carer's Allowance may also qualify for additional supports from my department. The annual Carer's Support Grant is paid for each person being cared for. This grant which is paid in June has been increased to €2,000, its highest level ever, and it is not subject to tax.

There are a number of social welfare payments including Carer’s Allowance which, depending on a person’s circumstances, may be liable to income tax. The Department of Social Protection makes the payment to the individual without deducting tax.

The tax treatment of income, including social welfare payments, is a matter for the Minister for Finance and is considered in the context of the annual Budget.

I trust this clarifies the position for the Deputy.