Dáil Éireann Debate, Tuesday - 13 June 2023
827. Deputy Cian O'Callaghan asked the Minister for Social Protection if she will review the carer’s allowance payment to include an additional option for the allowance to be paid based on the needs of the person requiring the care and not based on the means of the carers and their spouse, where the applicant falls outside the limit of the means test; and if she will make a statement on the matter. [27992/23]
View answerThe 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 in 2023 is expected to amount to almost €1.6 billion on these payments.
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 application of the means-test not only ensures that the recipient has an income need but also that scarce resources are targeted to those with the greatest need.
The current Carer's Allowance disregards are the highest income disregards in the social welfare system. As part of Budget 2022, I introduced significant improvements to the Carer's Allowance means test:
• The capital and savings disregard for the Carer’s Allowance means assessment was increased from €20,000 to €50,000, aligning it with the capital means test for Disability Allowance.
• For carers who work, the weekly income disregard was increased from €332.50 to €350 for a single person, and from €665 to €750 for carers with a spouse/partner.
These were the first changes to the means test in 14 years.
Removal of the means assessment for Carer’s Allowance would effectively change the nature of the scheme from a targeted support for those most in need it would to a universal social protection scheme. This would give rise to a very significant additional annual cost.
Non means tested payments are also available to carers, including Carer's Benefit, the Carer's Support Grant and the Domiciliary Care Allowance. A person in receipt of Carer's Allowance can also avail of the Carer's Support Grant and the Domiciliary Care Allowance.
As part of Budget 2023, I announced a range of measures directly benefitting family carers, including:
• A Cost of Living Double Payment to carers paid in October.
• A €500 Cost of Living payment for people receiving Carer’s Support Grant paid in November.
• Carers received the Christmas Bonus Double Payment in December.
• A €12 increase in the maximum rate of Carer’s Allowance and Carer’s Benefit took effect from January 2023 with proportionate increases for people receiving a reduced rate.
• A €2 increase for each Qualified Child bringing rates to €50 for Over 12s and €42 for Under 12s from January 2023.
• The Half-rate Carer’s Allowance is now disregarded in the means assessment for Fuel Allowance since January 2023.
• Domiciliary Care Allowance increased by €20.50 to €330 per month with effect from January 2023.
• Domiciliary Care Allowance is now available in respect of children with severe illness or disability who remain in hospital for up to six months after birth.
• A Cost of Living lump sum payment of €200 was paid in April to carers.
Notwithstanding the increased level of support already in place for carers, I have asked my department to keep these measures under review as part of the annual budgetary process.
Finally, I have committed to a carrying out a broad review of means testing this year which will include Carer's Allowance means test provisions.
I trust this clarifies the matter for the Deputy.
