Dáil Éireann Debate, Thursday - 18 June 2026
2. Deputy Seamus Healy asked the Minister for Social Protection if he will immediately abolish the income limit for carer’s allowance in view of the 2024 general election promises and the recent report regarding the difficulties experienced by carers; and if he will make a statement on the matter. [46523/26]
Amharc ar fhreagraI come back to a very important issue that I have raised previously, namely, the abolition of the means test for the carer's allowance. I am asking the Minister to do that on 1 July, in view of the promises made in the general election in 2024 by all political parties and particularly in view of the recent report by Family Carers Ireland that showed very significant issues in care provision.
As the Deputy knows, the carer's allowance is the main scheme by which my Department provides income support for carers. Currently, just over 108,000 carers receive this payment, with a provision of over €1.4 billion euro this year. The carer's support grant is a separate payment that was paid to over 147,000 carers on 4 June 2026, at a rate of €2,000 per person being cared for, marking an investment of €336 million.
The programme for Government has set out a commitment to significantly increase the income disregards for carer's allowance in each budget, with a view to phasing out of the means test during the lifetime of this Government. This process is well under way. Last July, the amount of weekly earnings disregard was increased to €625 for a single person and €1,250 for a couple. As part of budget 2026, I announced further improvements to the means tests. They will be introduced from 2 July. From then, 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 a couple. These are the largest ever increases in income disregards. They are higher than for any other payment.
In its recent report, Family Carers Ireland acknowledged the significant progress made in increasing income disregards. The report states that 68% of Irish households are now falling within the financial eligibility criteria. The impact of the increases will mean that those recipients on a reduced payment due to their means will see their payments increase. In addition, more carers will qualify for the carer's allowance. For example, a carer in a two-adult household with an income of approximately €110,000 will retain a full carer's allowance payment and a carer with an income of €138,000 will retain a partial payment. When one considers that the commitment to remove the means test is estimated to cost a minimum of about €600 million, it is clear that a commitment can only be phased in through a number of budgets. I intend to do this over the lifetime of the Government, in keeping with the conditions of the programme for Government.
The findings of the report from Family Carers Ireland, entitled "The State of Caring 2026", should shock us all. Some of the key findings include that 75% of carers have never received respite, 76% are cutting back on non-essentials, 71% find it difficult to make ends meet, 69% do not receive sufficient formal support, and 49% are cutting back on essentials like food and heating.
A stark 48% experience severe loneliness, 32% report very bad mental health and 19% report bad or very bad physical health. Carers do significant work and save the State billions of euro. It is now time to recognise that and implement the commitments and promises that were made during the general election 2024. The Minister has the opportunity to do that on 1 July and he should do that.
I am very aware of the work of Family Carers Ireland. We host a forum specifically for carers every year. We did that in May. I am very aware of the challenges being faced by carers in terms of respite and other supports. The Deputy may have missed the point within the report that over 68% of families would now receive a carer's allowance payment as a consequence of the income disregards being changed from July.
That leaves 32%.
This means that somebody on an income of €110,000 can receive a full carer's allowance payment and those on €138,000 can receive a partial payment. So, we are making very substantial progress in phasing out the means test. It is a commitment in the programme for Government and I will continue to progress it. I also have other commitments and I want to ensure that we look at the people who are on existing carer's payments for support.
Carers are very important and we had a full morning of engagement with them at our carers forum, where many of the issues in the Family Carers Ireland report were raised. We are working through those with other colleagues across the Government.
Every political party, including Fianna Fáil, made a commitment in general election 2024 to abolish the carer's means test, full stop, no ifs or buts. There were no terms and conditions. There was no small print and no devil in the detail. The Government was going to abolish the means test for carer's allowance, but it has not honoured that commitment. That raises the whole question of trust in politics and politicians. The public are becoming quite cynical now about all things political.
The Minister has another opportunity to do the right thing on 1 July. He is already making some changes, which are welcome. However, it still leaves one third of carers above the threshold of the means test. The Government has the funds available. The cost ranges from about €259 million to the figure the Minister has used, which is €600 million. The Parliamentary Budget Office says €259 million. The Government has a €9.2 billion surplus in budget 2026. The Minister has the opportunity and the funds. He should do the right thing and show the Government's bona fides to carers on 1 July.
The lifetime of this Government is to 2029. I have my ambitions to maintain this commitment. Any situation where a social protection support is available to a family on €110,000 per year in full or to a family on €138,000 in part represents very good progress. These are the biggest increases in the income disregard for the carer's allowance and will come into effect on 1 July. However, I also must have consideration of other pressures and priorities within my Department. I must have consideration for the people receiving carer's allowance at the moment. That is why we were able to introduce a €10 increase in the weekly carer's allowance for 2026.
I am very much aware of, and determined to implement, that programme for Government commitment. We will continue our work with Family Carers Ireland. We had a very good carers forum and there are many issued raised within "The State of Caring 2026" report that I will work on within my Department and with colleagues across the Government. I assure the Deputy that, given what we are doing from 1 July with the biggest increases in income disregards since the allowance's introduction, I am very much delivering to my party's commitment in this area.
