Ministers must act for Kildare carers on carers tax bills – Cllr

A local Labour councillor has called on the Ministers for Social Protection and Finance to immediately review the treatment of carers’ payments.

The move follows as thousands of Carers in Kildare and throughout the country 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.

According to Cllr Angela Feeney, this situation risks causing serious financial and emotional stress to families who already carry an enormous caring burden.

“This is an appalling situation that has blindsided carers”, Cllr Feeney said this week.

“I have been an active member of County Kildare Access Network for many years and know many carers and their families. Carer’s Allowance is means tested, and for many people that created a genuine and understandable belief that they did not owe tax.

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"Now over 34,000 Carers 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 our county. 

“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 Feeney pointed out that family carers save the State over €20 billion every single year, while the HSE’s approved budget stands at €26.9 billion.

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

Cllr Feeney said the Minister for Social Protection and the Minister for Finance must “immediately” review the matter, halt any retrospective tax demands linked to carers’ payments, and bring forward a permanent solution that removes carers’ payments from the tax net.

“Separately, to address the tax exposure Carers 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 Carers who are married or cohabiting with income of less than €11,100 are eligible for the credit.

“Government must act now to stand up for carers 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."