Dáil Éireann Debate, Thursday - 16 October 2025
265. Deputy Barry Ward asked the Minister for Social Protection if he will consider including verified disability-related expenses and private care costs as allowable deductions when assessing means for carer’s allowance; given the reality of many families not being able to access public healthcare supports due to significant delays; and if he will make a statement on the matter. [56297/25]
View answer267. Deputy Barry Ward asked the Minister for Social Protection in relation to the income thresholds for carers allowance; if will he consider introducing a model similar to the Disability Tax Credit approach, where disability-related costs are acknowledged as reducing disposable income, thereby adjusting eligibility thresholds accordingly; and if he will make a statement on the matter. [56299/25]
View answerI propose to take Questions Nos. 265 and 267 together.
Carer’s Allowance is a means-tested payment for people who are providing full-time care to someone who is incapacitated. It is designed to support carers whose ability to earn is significantly limited due to their caring responsibilities.
By its nature, the means test takes account of the income a person or couple has in terms of cash and capital. It does not take account of a person’s expenditure. In line with most social assistance payments, a number of deductions are permitted for Carer's Allowance such as PRSI before the income disregard is applied.
Any such change to include other costs, such as those associated with caring, disability related expenses or other deductions in the calculation of income such as those applied by Revenue in the form of credits or reliefs, would have significant budgetary implications and would give rise to inconsistencies in how means tests are applied across schemes and would significantly increase the complexity of the means assessment process.
The Programme for Government commits to significantly increasing the income disregards for Carer’s Allowance in each Budget with a view to phasing out the means test during the lifetime of the Government.
Just last week, as part of Budget 2026, I announced further improvements to the Carer’s Allowance means test that will be introduced next year. For carers who work, the weekly income disregard will be increased by 60% from €625 to €1,000 for a single person, and from €1,250 to €2,000 for carers with a spouse/partner/co-habitant. Since June 2022, this will amount to cumulative increases to the disregards of €667.50 for a single carer and €1,335 for a carer who is part of couple, or an increase of just over 200%.
These are the largest ever increases in the Carer’s Allowance income disregard and will mean that even people with what are considered to be relatively high incomes will qualify for a carer’s payment for the first time. For example, a carer in a two-adult household with an income of approximately €110,000 will still retain their full carers' payment and even with an income of €138,000 will retain a partial payment.
The latest changes are evidence of the Government’s determination to deliver on its commitment in the Programme for Government to eliminate the means test over the life of this Government.
I trust this clarifies the issue for the Deputy.
