The Carer’s Allowance is the main scheme by which my Department provides income support to carers. Expenditure on the scheme in 2026 is estimated to exceed €1.4 billion. At the end of April there were more than 106,800 carers receiving this payment.
The 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 payment is made in recognition of the fact that these carers are unable to earn a sufficient income due to their caring commitments. It is not, and never was intended to be a payment for the provision of care.
Where carers are providing care to more than one person, an increase of 50% is applicable. A higher rate of Carer’s Allowance is payable to carers aged over 66. It is also important to note that subject to eligibility, people who receive Carer’s Allowance may also receive a number of secondary benefits including a Free Travel Pass, the Household Benefits Package, a GP Visit Card and Fuel Allowance.
The Programme for Government has set out a timeline 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 process is already underway. Last July the amount of weekly earnings disregarded was increased to €625 for a single person and €1,250 for a couple. As part of Budget 2026, I announced further changes to the Carer’s Allowance means test that will be introduced in July. The weekly income disregard will increase 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 single carer disregard has increased by €667.50 and the couple disregard by €1,335. These are significant increases.
The reforms in July will see more carers qualify for Carer’s Allowance. 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, those recipients on a reduced payment due to means will see their payment increase.
The recent improvements outlined are evidence of the Government’s determination to deliver on its commitment to phase out the Carer's Allowance means test over the lifetime of the Government. We will continue to progress this commitment in light of the prevailing budgetary conditions.
I trust this clarifies the matter for the Deputy.
