Michael Cahill (Kerry, Fianna Fail)
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95. To ask the Minister for Employment Affairs and Social Protection his plans for phasing out the means test for the carer's allowance; and if he will make a statement on the matter. [8262/25]

Michael Cahill (Kerry, Fianna Fail)
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I too congratulate the Minister on his recent appointment and wish him the very best going forward. Carers do great work and a provide a great service for the State. In that context, means-testing for the carer's allowance should be phased out. What are the Minister's plans for the phasing out of the means test?

Dara Calleary (Mayo, Fianna Fail)
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I thank the Deputy. I formally congratulate him on his election and welcome him back to Leinster House.

The carer's allowance is the main scheme by which my Department provides income support to the very important work done by carers in the community. The primary objective of the carer's allowance payment is to provide an income support to those carers whose earning capacity is substantially reduced. There are currently 98,311 people in receipt of carer's allowance and expenditure in 2025 is estimated to be more than €1.24 billion.

A number of significant improvements have made to 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. This amounts to cumulative increases to the disregards of €292.50 and €585, respectively, since June 2022.

An interdepartmental working group involving the Departments of Health and Children, Equality, Disability, Integration and Youth was established last year to examine and review the system of means-testing for carer payments. I hope to have the report on its findings in the coming weeks.

The Government is very aware of the key role family carers play in society and the challenges they face on a daily basis. We have set out a timeline that commits to significantly increasing the income disregards for carer's allowance in each budget over the course of the next five years, with the ultimate view of phasing out the means test during the lifetime of the Government.

It will be a priority for me to do that, as I have discussed this morning, over the five budgets that will be presented by the Ministers for Finance and Public Expenditure, National Development Plan Delivery and Reform during the lifetime of the Government. This is a key commitment in the programme for Government and it is something that will be a priority for me as Minister in the Department of Social Protection.

Michael Cahill (Kerry, Fianna Fail)
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Recent media reports suggest the cost of abolishing the means test for carer's allowance is in the region of €3 billion per annum. I understand that is the Department's own estimate. In the Minister's opinion, how definitive is this estimate?

In March 2023, the Parliamentary Budget Office estimated the cost of fully abolishing the means test at €397 million. It also costed raising the income threshold so that all households earning under €100,000 would qualify for carer's allowance at €387 million. In 2024, the Parliamentary Budget Office, using new CSO data from 2022, provided three costing scenarios - low, central and high - which gave an annual cost estimate at the central level of €375.3 million. In April 2024, the Department of Social Protection estimated the additional cost of abolishing the means test at €600 million. It seems extraordinary that it could now be five times that amount.

Dara Calleary (Mayo, Fianna Fail)
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There is a range of costs. The figure of €3 billion only arises in the context of everybody who self-declared as a carer in 2022 census qualifying. Even if only 70% of those carers were to qualify, the cost would go up to approximately €2 billion.

The very important work done by carers is recognised. It has been recognised consistently by this Government and the previous one. We have made substantial changes to the supports available. In budget 2025, the carer's support grant increased to €2,000, which is the highest rate ever for this grant. The carer's allowance weekly income disregard will increase to €265 for a single person and to €1,250 as part of budget 2025. That is a very substantial increase in the payment in recent years. I will continue to engage with carers and their representative organisations, including at the carer's forum in the summer to ensure their voice is central to the work ahead of the next budget to support carers in the very important work that they do.

Michael Cahill (Kerry, Fianna Fail)
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Following budget 2025, the carer's allowance income disregard will be increased to €625 for a single person and €1,250 for a couple from July 2025. How many additional carers are now likely to qualify on the basis of this change? Does the Minister intend to increase the disregard year on year, over five budgets?

Ruairí Ó Murchú (Louth, Sinn Fein)
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It goes without saying that the means test must be removed for carers. We all know the financial impact on a home of dealing with a child with additional needs. The issue must be addressed.

I also agree that the discrepancy in the figures must be addressed. There must be some element of flexibility for carers who work as carers, who sometimes go over the 18.5 hours, in particular in cases where they are making up for somebody not coming in. Could we deal with the time over a longer period to allow for that and also deal with these anomalies? We need to make it possible to provide information on working hours on a more regular basis. This must be done with the Department. I have come across people who suddenly get a huge bill and they owe tens of thousands of euro. We need to deal with this issue.

Dara Calleary (Mayo, Fianna Fail)
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A lot of points have been raised. I ask the Deputy to come back to me on the last issue he raised.

I assure all Deputies that we are very focused on the work done by carers, which is incredibly important. As I said earlier, it should be work done across the Oireachtas, not just in the committee on social protection but also the health committee. It is the Government's intention, over its lifetime, and by means of the five budgets that we hope to present, to remove the means test. It will be done in a manner that is reflective of the budgets at the time.

This is a major priority. Supporting carers and the very important work they do is not just a priority for the Government; it is a priority for me. I intend to champion it during my time as Minister for Social Protection.