Letters to the Editor: Taxation and family carers

The below was published in Letters to the Editor in The Irish Times on January 26th, 2026.

Sir, – The airwaves have been filled in the past week with the confusion and distress felt by family carers following recent communications about the taxation of Carer’s Allowance and Carer’s Benefits payments.

From January 1st, 2026, Revenue will be automatically notified when a person is awarded Carer’s Allowance or Carer’s Benefit, replacing the previous system of self declaration.

While these payments have always been taxable, this communication debacle has brought into sharp focus how damaging and unjust this policy is for family carers providing extraordinary levels of unpaid care.

Carers already face exhaustive means testing and ongoing reassessment to qualify for these payments. After all of this scrutiny, the State then taxes the payment back – a decision which family carers believe is deeply unfair.

Family carers deliver an estimated 19 million hours of unpaid care every week – work that would cost the State an estimated €20 billion annually to replace. Carer’s Allowance and Carer’s Benefit are modest supports, far below the value of the care provided, and unlike many other social supports such as Disability Allowance, Domiciliary Care Allowance and Child Benefit, they continue to be treated as taxable income.

Family Carers Ireland firmly believes that carers should receive an adequate, fair payment, exempt from tax and means testing, that reflects the essential work they do and the value they bring to our society. Taxing these payments is a government policy choice and Government has the power to change it.

Family carers keep hospitals from overcrowding, prevent unnecessary residential placements, and sustain families and communities across Ireland. Taxing this lifeline is economically short sighted and morally wrong.

If we truly value family care, Carer’s Allowance and Carer’s Benefit must be made tax free and set at a fair level. This is the minimum action required. Family carers deserve support, respect and security; not tax bills. – Yours, etc,

SHARON FOLEY,

CEO,

Family Carers Ireland,

Co Offaly