The Carer's Allowance payment is an income support for those carers who cannot earn adequate income in the open labour market due to their caring responsibilities. In this regard the Carer’s Allowance forms part of the system of social assistance supports that provide payments based on income need.
There have been regular calls by carers and their representative organisations for a more generous means assessment for the Carer’s Allowance over successive Budgets. In response to these calls and in acknowledgement of the important role that family carers play in our society, the Government has committed 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.
Recent progress was made at the start of July when the weekly income disregard increased from €450 to €625 for a single person, and from €900 to €1,250 for carers with a spouse or partner.
Further steps were taken last week as part of Budget 2026, when I announced more 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%.
The increases in 2026 will result in more carers qualifying for Carer’s Allowance and many on a reduced rate seeing their payments increase. For example, a carer in a two-adult household with an income of approximately €110,000 will still retain their full Carer's Allowance payment and even with an income of €138,000 will retain a partial payment.
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. They 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.
It is important that we make progress in a way that is sustainable, and which balances the allocation of the available budgetary resources each year across all priorities. This includes funding services to other vulnerable groups such as disabled people, lone parents, pensioners and children. As such further changes to the Carer’s Allowance payment, will be made in a considered manner within an overall budgetary and policy context.
Finally it is important to note that my department makes a number of other income supports to carers that are not means assessed these include the annual Carer's Support Grant, the monthly Domiciliary Care Allowance payment and the weekly social insurance based Carer's Benefit. In this regard, I am satisfied that there a comprehensive suite of income supports available for carers across a range of income brackets.
I trust this clarifies the issue for the Deputy.