CARER’S ALLOWANCE BILL

EXPLANATORY AND FINANCIAL MEMORANDUM

INTRODUCTION

1. This Explanatory and Financial Memorandum relates to a Member’s Bill - the Carer’s Allowance Bill. It has been prepared on behalf of Mr. David McNarry (the Member in charge of the Bill) to assist the reader in understanding the Bill and to help inform debate on it. It does not form part of the Bill and has not been endorsed by the Assembly.
2. The Memorandum needs to be read in conjunction with the Bill. It is not, and is not meant to be, a comprehensive description of the Bill. So where a clause or part of a clause does not seem to require explanation or comment, none is given.

BACKGROUND AND POLICY OBJECTIVES

3. The Member is proposing to amend the Social Security Administration (Northern Ireland) Act 1992 to exclude the state retirement pension from consideration in the assessment of carer’s allowance. Carer’s allowance is available to people aged 16 and over who provide care of at least 35 hours per week to a severely disabled person who is in receipt of either the highest or middle rate of disability living allowance care component or attendance allowance.
4. Under the Social Security (Overlapping Benefits) Regulations (Northern Ireland) 1979, persons who are in receipt of carer’s allowance have the payment of state pension taken into account when their entitlement to carer’s allowance is being assessed. This means that currently any person who in receipt of their state retirement pension is not entitled to any payment under the ‘Carer’s Allowance’ provisions. The Bill amends the Social Security (Northern Ireland) Act 1992 to exclude the state retirement pension from consideration in the assessment of carer’s allowance.

CONSULTATION

5. Under the Assembly’s legislative procedures, there is no requirement for an individual Member to undertake consultation before introducing a Bill. Instead consultation on such proposals is to be carried out by the relevant Committee during the Committee Stage of the Bill.

OVERVIEW

6. The Bill has three clause and no Schedules.

COMMENTARY ON CLAUSES

Clause 1: Adjustment of carer’s allowance

Clause 1, subsection (1), (2) and (3) of the Bill amends section 71 of the Social Security Administration (Northern Ireland) Act 1992 ("the Administration Act") by inserting a new subsection stating the circumstances which regulations may not cover. This will prevent the adjustment of carer’s allowance payable to a person by reference to the retirement pension payable to that person or to that person’s wife, husband, civil partner or dependent or a dependent’s wife, husband or civil partner.

Clause 2: Commencement

Clause 2 states that the Bill will come into operation on the 1 April 2009.

Clause 3: Short title

This clause sets out the short title of the Bill.

FINANCIAL EFFECTS OF THE BILL

7. The Bill is likely to result in an increase in payments for carer’s allowance payable by the Department of Social Development. It is estimated that the additional net cost is approximately £20.6m per annum.

EQUALITY IMPACT ASSESSMENT

8. A copy of the Member’s proposal was sent to the Equality Commission on 6 February 2008. The Chief Commissioner responded and advised that the Commission is supportive of the main proposals as outlined in the Bill.

HUMAN RIGHTS ISSUES

9. A copy of the Member’s proposal was sent to the Human Rights Commission on 6 February 2008. The Chief Executive responded and advised that the proposals are to be welcomed and that the Commission supports the proposed Bill.

SUMMARY OF THE REGULATORY IMPACT ASSESSMENT

10. No detailed or formal assessment exercise has been carried out.

LEGISLATIVE COMPETENCE

11. At Introduction the Member in charge of the Bill (Mr. David McNarry) had made the following statement under section 9 of the Northern Ireland Act 1998:

"In my view the Carer’s Allowance Bill would be within the legislative competence of the Northern Ireland Assembly."