Any attempt to cut the half-rate carers' allowance or to close it to new applicants will end up costing the State more in the long-term, it has been claimed.
The Carers' Association said the allowance, which was introduced two years ago, is saving the state money by keeping people out of expensive nursing homes which cost an average of €40,000 a year.
The payment is currently €110 a week and is given to 18,500 people who are already in receipt of a social welfare payment, such as those claiming a widow's or state pension, as a recognition of the extra costs in providing full-time care in the home.
In its pre-budget submission launched yesterday, the association said the payment, which costs an estimated €90 million a year, offers "excellent value" when it would only buy the equivalent of five to six hours of professional care in a nursing home per week.
The association cited the example of single mother Alison McKim (39) who cares for her son Zack (17) who has cerebral palsy, epilepsy, asthma and who is blind.
She is also in receipt of the lone parent's allowance which is €220 a week and a ¤190 per week disability payment for her son.
Ms McKimm, who lives in Terenure, said the allowance pays their electricity bill which is higher because Zac has so much extra equipment and other expenses not covered by the medical card.
"The money means the difference between getting out of poverty or not," she said.
"Considering what it would cost to put Zack into full-time care, I think it is disgraceful that the Governnment would consider cutting such an allowance."
The Special Group on Public Service Numbers and Expenditure Programmes, better known as An Bord Snip Nua, recommended that all such double social welfare payments be ended.
Carers Association chief executive Enda Egan there was "real concern" that the half-rate carers allowance scheme would be closed to any new applicants after the budget, so creating a two-tier system.
He described any such proposal as a "serious error of judgment".
"From December 1st, how are the Government going to say that somebody who is providing this care in the home gets a certain amount of recognition from Government but a new person starting after January 1st gets nothing?" he said.
Mr Egan said carers are a "unique group" who are saving the state €2.5 billion per year and any cuts would force more people into full-time state care.
