Dáil Éireann Debate, Tuesday - 27 January 2026
704. Deputy Michael Cahill asked the Minister for Social Protection the improvements being introduced in regard to the carer’s allowance; when the means test will be abolished; and if he will make a statement on the matter. [6058/26]
View answerI want to assure the Deputy that I, and this Government, fully recognise and value the role that carers play in our society.
The Carer’s Allowance is the main scheme by which the Department provides income support to carers. Expenditure on Carer’s Allowance in 2026 is estimated at over €1.4 billion.
The primary objective of the payment is to provide an income support to people whose earning capacity is substantially reduced because they cannot work full-time due to their caring responsibilities.
The Programme for Government has set out a timeframe which 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 this Government. This is a major change to the Carer's Allowance, and to the Irish social welfare system generally.
This process is well underway. For example, from last July the amount of weekly earnings disregarded was increased to €625 for a single person and €1,250 for a couple.
More recently, as part of Budget 2026, I announced further improvements to the Carer’s Allowance means test that will be introduced in July this year. The weekly income disregard will increase by 60% from €625 to €1,000 for a single person, and from €1,250 to €2,000 for carers who are part of couple.
Since June 2022, there have been cumulative increases to the disregards of over 200%.
The changes to the means test announced in Budget 2026 are the largest ever increases in the Carer’s Allowance income disregard and will result in more carers qualifying for Carer’s Allowance. In addition, many carers on a reduced rate will see their payments increase.
For example, a carer in a two-adult household with an income of approximately €110,000 will retain their full Carer’s Allowance payment and even with an income of €138,000 will retain a partial payment.
In addition, as part of Budget 2026 and with effect this month, the personal rate of Carer's Allowance increased to €270 for a carer under age 66 and €308 for a carer aged 66 or over. A recipient caring for more than one person and in receipt of the maximum rate will now receive a personal rate of €405 per week if aged under 66 or €462 per week if aged 66 or over.
These improvements are evidence of the Government’s determination to deliver on its commitments to further support carers over our term. We will continue to do so in a progressive manner, in light of the prevailing budgetary conditions.
I trust this clarifies the issue for the Deputy.
