Carer’s Allowance & Carer’s Benefit: What’s Really Changing — and Why It’s Not Good Enough
Over recent weeks, many family carers have received letters and seen media coverage about changes to how Carer’s Allowance and Carer’s Benefit are reported to Revenue from 1 January 2026.
These communications have caused real fear, anxiety and confusion — and carers are right to be concerned.
Much of the clarification outlined below has been provided by Family Carers Ireland, who have been engaging directly with Revenue and Government departments on behalf of carers.
Let’s be clear.
From 1 January 2026, Revenue will be automatically notified when a person is awarded Carer’s Allowance or Carer’s Benefit. This replaces the previous system where carers were expected to self-declare this income.
The Government and Revenue insist this is a “technical” or “administrative” change and that there is no change in taxation policy, as carers’ payments have always been treated as taxable income.
However, while that may be technically true, it ignores the very real impact this is having on carers’ lives.
What Revenue Has Confirmed
(Information confirmed following engagement by Family Carers Ireland)
- This process is forward-looking only.
Carers who did not previously declare Carer’s Allowance or Carer’s Benefit will not receive retrospective tax bills as a direct result of this change. - However, carers (or their partners) who apply for tax credits or reliefs for earlier years — such as medical expenses — may unintentionally trigger a tax liability, depending on their personal circumstances.
- In some cases, carers are effectively being advised that “the best course of action may be to do nothing”, meaning carers may avoid claiming legitimate entitlements out of fear of future tax consequences.
Revenue has stated it will deal with cases “sympathetically”, but this offers little comfort to carers already living on the edge financially.
The Bigger Issue: This Is a Political Choice
While Revenue administers the system, taxing carers is a Government policy decision.
Family carers provide unpaid care that saves the State over €20 billion every year.
They sustain an overstretched health and social care system — often at immense personal cost — yet remain:
- Means-tested
- Taxed
- Underpaid
- And undervalued
Our Position Is Simple
Don’t Leave Them Behind fully supports the long-standing position of Family Carers Ireland:
- Carer’s Allowance and Carer’s Benefit must be tax-free
- They must be non-means-tested
- Carers must receive a basic, guaranteed living income
- Care must be valued — not penalised
If Ireland genuinely values care, carers should not be facing administrative traps, fear-inducing letters or impossible financial choices. They deserve security, dignity and respect.
What Happens Next
A cross-party meeting in Leinster House is taking place to push for this policy change, alongside engagement with the Minister for Finance. This issue must be addressed before Budget 2027, not delayed yet again.
Carers have carried this State for decades.
It’s time the State supported carers.
#DontLeaveThemBehind
#FamilyCarersIreland
#ValueCare
#EndCarerTax
#LivingIncomeForCarers