Call to Ministers to review treatment of carer’s payments after thousands receive letters from Revenue

By Philip Rooney, The Sligo Champion

Labour Cllr Ann Higgins has called on the Ministers for Social Protection and Finance to immediately review the treatment of carers’ payments, as thousands of carers in Sligo and nationwide now face Revenue tax bills going back years after around 34,000 people received letters confirming that Carer’s Allowance and Carer’s Benefit payments are taxable.

This situation risks causing serious financial and emotional stress to families in Sligo who already carry an enormous caring burden.

The Labour Party local representative has hit out at the situation where tens of thousands of people are receiving letters informing them they have outstanding tax bills.

“This is an appalling situation that has blindsided carers across Sligo. Carer’s Allowance is means tested, and for many people that created a genuine and understandable belief that they did not owe tax.

"Now over 34,000 Carer’s are opening letters from Revenue telling them they may face tax bills going back years. We need to be clear about what this means in real life for carers carrying out enormous work in Sligo. These are people who have given up work or reduced hours to care for a loved one. They are already under incredible pressure financially, emotionally and physically. We also need to be honest about the scale of what carers provide.”

Cllr Higgins outlined the benefit of carers to the State saying, “Family carers save the State over €20 billion every single year. To put that in context, the HSE’s approved budget stands at €26.9 billion. Carers in Sligo are effectively delivering their own health service in homes and in their community, yet they are treated as an afterthought when it comes to basic fairness and recognition.

“This situation did not arise overnight. For years, carers’ organisations have warned that taxing carers’ payments makes no sense and causes confusion and distress. Comparable social welfare supports, including Jobseeker’s Allowance and Disability Allowance, are not taxed as these are means tested payments. There is no justification for singling out carers for worse treatment, particularly when the State depends so heavily on the care they provide to keep the health system functioning.

“Carers deserve certainty, respect and support, not shock letters and financial fear landing through the door.”

Calling for urgent action to be taken Cllr Higgins insisted, “The Minister for Social Protection and the Minister for Finance must immediately review this matter, halt any retrospective tax demands linked to carers’ payments, and bring forward a permanent solution that removes carers’ payments from the tax net.

“While Revenue has said it will not seek to review or collect tax for previous years, Labour is proposing that legal certainty be provided with a clear amnesty for any historic liability, through amendments to the Finance Act. Separately, to address the tax exposure Carer’s now face to tax, the conditions that apply to the Home Carer Tax Credit should be changed by increasing the current credit above €1,950, extending eligibility to single people, and substantially increasing the income taper. At present only Carer's who are married or cohabiting with an income of less than €11,100 are eligible for the credit.”

Outlining the reality of the situation for many carers, Cllr Higgins said, “I am dealing with multiple cases where adult children, forced to lived at home due to the catastrophic housing market, are the sole carers for their elderly parents, but do not qualify for the Home Carer Tax Credit. So not only can they not afford to move out of their childhood bedrooms, but they are also in effect financially penalised for doing good by providing care to their parents.

“Government must act now to stand up for carers in Sligo and across the country, and recognise that the care they provide is not just invaluable, it is essential to the functioning of our health and social care system."

Article Funded by the Local Democracy Reporting Scheme.