Removing means test on carer's allowance could cost around €260m, independent body finds

A key policy aim of the new Government, which many parties campaigned on during the election, has been the abolition of the means test for the carer’s allowance. 

Abolishing the means test for the carer’s allowance would cost an estimated €259m, the Parliamentary Budget Office (PBO) has said, far less than the €600m a year touted by the Government.

The independent body has published new analysis suggesting that, when factoring in additional interactions in the social welfare system and income tax system, the full net cost would be €266m in 2026.