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Dáil

Written answer

Social Welfare Benefits

472. Deputy Seamus Healy asked the Minister for Social Protection if he will introduce a disregard for income derived from carer's allowance when assessing other social welfare payments including the working family payment; and if he will make a statement on the matter. [53661/26]

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Dara Calleary Minister for Social Protection Fianna Fáil

The Working Family Payment is a tax-free payment which provides an income top-up for employees, with children and with low earnings.  It is a targeted measure that is directly linked to household income and therefore directly supports low-income working families.

As at the end of June, there were some 56,000 households in receipt of the Working Family Payment, in respect of some 112,000 children.

To be eligible for the Working Family Payment the applicant must work a minimum of 38 hours a fortnight.  It is important to note, to meet this requirement, hours worked can be combined for example those worked by the applicant and their spouse or partner.

The payment made is 60% of the difference between overall weekly household income and the relevant income threshold.  The thresholds applied are based on the number of children in a household.

Budget 2026 measures included from January, a €60 per week increase was applied to income thresholds for all family sizes and Fuel Allowance was expanded to include Working Family Payment recipients with newly eligible households receiving these payments backdated.

The Working Family Payment is an in-employment support, as such it is an income assessed scheme and is not subject to a means test.

All income from employment assessed is net of income tax, pay-related social insurance, the universal social charge and pension-related deductions.  In general, income from social protection payments, including Carer’s Allowance, is included in the assessment. Certain sources of income are disregarded, these include Child Benefit, the Supplementary Welfare Allowance and certain payments made directly or indirectly by or on behalf of the Minister for Justice.

Once awarded, Working Family Payment is payable for 52 weeks, even where the person’s income changes as long as the recipient continues to satisfy the qualifying conditions.  This provides a safeguard for people who experience seasonal fluctuations in their income.

Disregarding the Carer’s Allowance income assessment from the Working Family Payment income test would be a significant shift in policy direction.  There are no current plans to change the income assessment applied.

I trust this clarify the position for the Deputy.

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