1948. Deputy Robert Troy asked the Minister for Social Protection to provide an update on the Government's plans to abolish the carer's allowance means test. [55230/26]

The Carer’s Allowance is the main scheme by which the Department provides income support to carers.  At the end of June there were just under 109,000 carers receiving this payment.

The Programme for Government has set out a time frame 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.

The income disregards increased in 2025 and as part of Budget 2026, I announced further, even more significant improvements to the Carer’s Allowance means test that were introduced this month.  From the 2nd of July, the weekly income disregard increased 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.

These are the largest ever increases in the income disregards and have resulted in more carers qualifying for Carer’s Allowance.  Since the start of the month, an estimated 2,700 carers received an increase in their Carer’s Allowance payment.  It is now the case that virtually all carers in receipt of Carer’s Allowance are being paid the maximum rate of payment.

For example, a single carer working part-time can earn up to €50,000 and retain their full Carer’s Allowance payment.  The disregard is over double the average earnings for part-time workers.

Specifically with regard to couple households, a carer in a two-adult household with an income of approximately €110,000 can retain their full Carer’s Allowance payment and even with an income of €138,000 they will retain a partial payment.  This represents an increase from approximately €69,500 and €97,500 respectively and now covers up to 90% of couple households.

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 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.  Any further improvements to the means test will be considered as part of the annual Budgetary process having regard to overall welfare improvements.