Dáil Éireann Debate, Thursday - 18 June 2026
95. Deputy Barry Heneghan asked the Minister for Social Protection whether his Department has assessed the impact of the means test for carer’s allowance on family carers; whether the findings of any such assessment will inform consideration of further changes to the means test as part of Budget 2027; and if he will make a statement on the matter. [46275/26]
Amharc ar fhreagraThe Carer’s Allowance is the main scheme by which my Department provides income support to carers. Expenditure on Carer’s Allowance in 2026 is estimated to exceed €1.4 billion. At the end of May there were just under 108,000 carers receiving this payment.
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 next month. From the 2nd of 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.
The changes next month will be the largest ever increases in the income disregards. The impact of the increases will mean that those recipients on a reduced payment due to means will see their payment increase. In addition, more carers will qualify for Carer’s Allowance, even those in households that are regarded as having relatively high incomes. 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.
Removing the means test is a significant shift in policy direction and there may be further implications above the cost exposure. For this reason the income disregard is being abolished in a measured way over a number of Budgets. The scheme is demand led and the Department is closely monitoring the inflow into the scheme to assess any change in trends. Data on take-up is published in the Department's quarterly statistical releases.
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.
