There are several allowances available to help with the cost of caring for an elderly family member. Laura Slattery explains the strict eligibility rules
State payments like the carer's allowance and the carer's benefit can provide a safety net to people who look after elderly family members either in their own home or in the older person's home on a full-time basis.
But there are strict eligibility rules for these payments, which mean that fewer than a fifth of carers are estimated to receive them.
To be eligible for the maximum weekly carer's allowance of €180, a single carer cannot earn much more than €290 a week, as this is the level of income that will be disregarded for means-testing purposes.
The combined weekly income that will be disregarded for couples is €580.
To qualify, the carer must not be employed (or self-employed) outside the home for more than 15 hours a week - increased from 10 hours in last year's budget - and the person they are caring for must be medically certified as needing full-time care or attention.
Where more than one person is being cared for, the maximum weekly rate for the carer's allowance is €270.
If the carer is over 66 years, the maximum weekly rate is €200, while for carers over 80 years, the maximum rate is €180.
About 26,000 carers receive the carer's allowance, according to the Department of Social and Family Affairs. But the 2002 Census revealed that there were almost 150,000 people caring for family members in their homes, with 50,000 people doing so full time.
Minister for Social and Family Affairs Séamus Brennan has said the income limits for the payment will be expanded so that people on average industrial incomes can qualify.
The carer's benefit payment is a short-term payment granted to employed people who have paid a certain number of PRSI contributions and who are taking carer's leave.
The duration of the payment has recently been extended by nine months from 65 weeks to two years and the Government has promised to amend the Carer's Leave Act, so that the carer's employment rights are protected during this time.
Again, the carer must not be employed outside the home for more than 15 hours a week to qualify. The maximum rate is €180.70, or €271.10 if the carer is providing care to more than one person.
Carers may also qualify for the respite care grant, an annual payment designed to give full-time carers a break from their care duties.
The respite care grant is now worth €1,200 a year, having increased by €200 in last year's budget. About 36,000 carers receive this payment, according to the Department of Social and Family Affairs.
Meanwhile, people who need nursing home care but who are unable to pay for it may be entitled to the nursing home subvention, which is paid by the Health Service Executive (HSE).
The application should be made before entering the nursing home, unless there is an emergency.
This is important because if the person goes into a nursing home before they apply, they may not be allowed to apply for a subvention for two years.
The subvention is designed to help with nursing home costs and is not intended to meet the full costs.
However, the HSE may agree to pay the full cost of a private nursing home bed, in cases where the HSE has what are called "contracted beds" in private nursing homes. But there are no clear rules about who is entitled to a contracted bed and who isn't.
Last December, the Department of Health announced a review of the subvention levels payable under the scheme, and legislation published in March proposed revised subvention levels and changes in how people's income and assets such as the family home are assessed under the means test.
However, the measures set out in the legislation are not yet in force.
At the moment, the maximum rate payable is €190.50 a week and lower rates of €152.40 a week or €114.30 a week may be payable depending on the degree of care needed.
A reduced subvention may be payable to a person who just exceeds the income limits under the current means test.
According to carers' groups, the older person's family often makes up the balance of the weekly fees, which range from about €500 to over €1,000 depending on the part of the country and the type of facility.
Fees paid to registered private nursing homes are eligible for tax relief at the highest rate at which the person paying the fees pays tax.
The relief is available to the nursing home resident or any person who is paying the fees.
A list of approved nursing homes is available from the Revenue Commissioners and is published on its website.
The tax relief can be claimed alongside a variety of other medical expenses by using Revenue Form Med 1.
The employment of a qualified nurse in the case of serious illness may also qualify for tax relief. Incapacitated people assessed by their doctor to be in need of full-time care, or their spouse or relative, can offset the cost of employing a carer against tax up to a limit.
People can also make deeds of covenant to incapacitated relatives.
Under a deed of covenant, a person guarantees to pay an annual sum to a relative for more than six years.
Deeds of covenant may reduce the income tax bill of the person giving the money if they pay tax at the higher 42 per cent rate, while also ensuring the recipient can pay for care and any other expenses they may have.
However, money received under a covenant is treated as income and may affect the recipient's entitlement to means-tested payments such as the disability allowance or the blind pension.
•Further information is available from www.oasis.gov.ie, www.revenue.ie, www.welfare.ie and local health authorities.