The Budget brought welcome news to many individuals or families caring for an ageing or disabled relative.
The savings disregard will be increased from €20,000 to €50,000 for an individual and from €40,000 to €100,000 for couples.
The income disregard has been increased from €332 to €350 per week for an individual and from €665 to €750 for a couple, or an annual income of €18,200 or €39,000 respectively.
If you qualify for a Carer’s Allowance, you may also qualify for a Free Travel Pass and the Carer’s Support Grant, plus a free gas/electricity allowance if you are living with the person you are caring for.
It is worth noting that Carer’s Allowance is not taken into account in the assessment for a medical card.
If you are providing care to more than one person, you may be entitled to an additional 50pc of the maximum rate of Carer’s Allowance.
Eligibility
You must be living with, or be in a position to provide full-time care and attention to, the person in need of care; there is no upper age limit for the carer.
The person being cared for cannot normally live in an institution, but you may continue to be regarded as providing full-time care if the person being cared for is undergoing treatment in a hospital or other institution for a period not longer than 13 weeks.
You must not be engaged in employment, self-employment, training or education courses outside the home for more than 18½ hours a week. Certain farming spouses may meet this requirement.
The person you are caring for must be either:
■ Over the age of 16 and so incapacitated as to require full-time care and attention for a period of at least 12 months — needing continuous supervision to avoid danger to themselves, or continual supervision and frequent assistance in connection with normal bodily functions.
■ Or be under 16 and getting a Domiciliary Care Allowance.
Means test
Your means are any income you or your spouse, civil partner or cohabitant have, or property (except your home) that could bring in money or provide you with an income.
Any payment made by the Department of Social Protection is not taken into account in the means test for Carer’s Allowance.
Property which is personally used or enjoyed by a person is assessed on the yearly income derived by that person from it.
This includes a farm of land owned or leased; a house partly lived in and partly let; and accommodation provided under the terms of a will or deed of transfer.
Means from farming is assessed on the basis of the likely income from the farm in the next 12 months. In most cases the figures for the last 12 months can be used
Means test example
Mary is married to Joe and works mainly in the home as well as caring for her elderly mother in the family home.
Mary also has a small part-time job which earns her €120 per week. Joe has part time off-farm employment earning €320 per week.
The farm earns an annual profit of €13,520 (€260 per week). In addition Joe and Mary have Co-op shares and savings worth €65,000.
The couple’s total income amounts to the equivalent of €700 per week, which falls under the new weekly disregard of €750. Their combined savings are also under the new threshold of €100,000, so Mary will qualify for the full Carer’s Allowance come June 2022.
Until June 2022, her Carer’s Allowance is reduced by €65 per week as both their combined incomes and savings exceed the current thresholds.
Care sharing
Two carers who are providing care on a part-time basis in an established pattern can also share a single Carer’s Allowance payment and the annual Respite Care Grant.
Each carer must be providing care from Monday to Sunday but can do so on alternate weeks. A carer providing full-time care on a part-time basis is required under legislation to provide this care for a complete week ie, Monday to Sunday.
A carer who is providing care on a part-time basis to someone who attends a residential institution, for example, every other week, may also qualify.
Carer’s Support Grant
The Carer’s Support Grant (formerly called the Respite Care Grant) is automatically paid to people getting Carer’s Allowance in June of each year.
You must be caring for the person on a full-time basis and caring for them for at least six months, which must include the first Thursday in June.
You must be living with the person being cared for or, if not, be contactable by phone or alarm.
You do not qualify if you are working more than 15 hours per week outside the home or if you are taking part in an education or training course for more than 15 hours a week, or if you are getting a jobseeker’s payment or signing on for jobseeker credits.
The grant is €1,850 paid in one sum each year.
Rates
Your payment is made up of a personal rate for yourself and extra amounts for any child dependants.
You may claim a full-rate increase in your payment for a child dependant if you are single, widowed or separated, or you may claim a half-rate increase in your payment for a child dependant if you are living with your spouse, civil partner or cohabitant.
Carer’s Allowance is paid for 12 weeks after the death of the person being cared for.
Carer’s Allowance is a taxable source of income.
PRSI credits
PRSI credits may be awarded to recipients of Carer’s Allowance where the claimant was employed and paid PRSI contributions prior to receiving Carer’s Allowance.
If, however, there is a gap of two years in the claimant’s insurance record, credits are not valid until at least 26 PRSI contributions have been paid.
Carers who have a child under 12 or a person who is so incapacitated as to require full-time care and attention may also benefit under the Homemakers Scheme in that the years spent caring may be disregarded for the purpose of the yearly average contribution test when calculating entitlement to Contributory State Pension at age 66.
Applying
Fill in an application form CR1 — contact your social welfare local office or Citizens Information Service — and send it to Department of Social Protection, Carer’s Allowance Section, Social Welfare Services Office, Government Buildings, Ballinalee Road, Longford
The form includes a medical report which must be signed by the person receiving care and completed by their doctor.
Payment will be awarded from the date your application is received or from the date the qualifying payment is awarded, if later.
Martin O’Sullivan is the author of the ACA Farmers’ Handbook and is a farm business and tax consultant based in Carrick-on-Suir; www.som.ie
