211. Deputy Máire Devine asked the Tánaiste and Minister for Finance if he will make the carer's allowance and carer's benefit tax exempt and non-means-tested, the same as other social welfare supports including disability allowance, jobseeker's allowance, domiciliary care allowance and child benefit, in recognition of carers saving the State over €20 billion each year through their unpaid care; and if he will make a statement on the matter. [9945/26]

I understand that, subsequent to putting down this question, the Deputy clarified that the question relates to making carer’s benefit tax exempt, and making carer's allowance tax exempt and non-means-tested.

Carers play a fundamental supporting role in society, and the Government are committed to supporting individuals and families with caring responsibilities. This is acknowledged by the broad range of commitments in the Programme for Government to improving supports for carers.

Carer's Allowance and Carer's Benefit are subject to Income Tax but are exempt from USC and Pay Related Social Insurance. There is no change in this status.

It should be noted that not all carers who are in receipt of Carer’s income will have a tax liability, particularly if their income level is below the taxation threshold, or they have sufficient tax credits to reduce their liability to nil. A person’s tax liability will depend on their individual personal circumstances, income levels and personal credits available to them and their family.

As the Deputy will appreciate decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to available resources and the sound management of the public finances.

In relation to the Deputy's question regarding means-testing for Carer’s Allowance, I would note that this is beyond my direct remit as Minister for Finance as it is a matter for the Minister for Social Protection in the first instance.

I am advised by the Department of Social Protection that the Carer’s Allowance is the main scheme by which the Department of Social Protection provides income support to carers. Expenditure on Carer’s Allowance in 2026 is estimated to exceed €1.4 billion.

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 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, further changes to the means test were announced that will be introduced this July. 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 latest 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, 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.

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 course of this Dáil term. We will continue to progress this commitment in light of prevailing budgetary conditions.