The cost of abolishing means testing of the carer’s allowance could amount to €3 billion per year, the Department of Social Protection has estimated.
The programme for government pledges to abolish the means testing of the allowance within the lifetime of this Government, something long-called for by advocacy groups.
Several estimates have now been provided to Minister for Social Protection Dara Calleary in a briefing prepared on his appointment as Minister.
At a minimum, the cost of removing the means test would be at least €360 million as the 26,200 recipients of the domiciliary care allowance would automatically qualify, according to department officials.
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“Allowing for normal inflow and the extension of a full rate of payment to people currently receiving a partial payment, the cost is likely to be no less than €700 million per annum for a full year at anticipated payment rates and volumes for 2025,” the briefing reads.
However, once a “potential increased inflow” is accounted for, the department estimates the additional cost of abolishing the means test could extend to €3 billion per year. This inflow uses Census data for the total number of carers across the country, and takes into account additional carer support grant costs, noting the programme for government commitment to increase this from €2,000.
Some 99,000 individuals are receiving carer’s allowance, the estimated cost of which is noted in the briefing as €1.24 billion for 2025.
Separately, the briefing notes that the department holds a “significant stock” of social welfare overpayments, the outstanding balance of which was €558 million as of October 2024.
Some 201,866 individuals have received overpayments, 67 per cent of whom (134,970) incorrectly received €266 million in total and are logged as “not repaying”, according to the briefing.
Similarly, approximately €29 million in overpayments made to those who received pandemic unemployment payments is yet to be recouped.
Some 880,000 people received at least one payment under the scheme. In total, 30 million payments were issued at an overall spend of €10 billion.
Following a cross-check of payments with Revenue records, the department found 65,000 cases where there was an overlap between receipt of the payment and employment.
Some 22,750 individuals who received overpayments amounting to €34 million have been contacted to date, and about €5.2 million of this has since been collected.
The briefing notes that plans are in place to “follow up” with those who have yet to put in place a repayment plan.
Meanwhile, almost 8,000 international protection applicants have had payments stopped since the department began income testing of daily expenses allowance in June 2024.
Currently, international protection applicants living in State-provided accommodation receive €38.80 per week, while the rate is €29.80 per child. The rates have remained unchanged since 2019.
A higher weekly rate of €113.80 is paid to those who are awaiting State-provided accommodation.
Payments made until the end of October to almost 14,500 adults and 6,400 children until last year amounted to €46.5m.
