Complete abolition of the means test for the carer's allowance would cost over €140 million annually, Minister for Social and Family Affairs Séamus Brennan said.
"There are differing views on this, with some support organisations strongly of the view that if this level of resources were available, it would be more beneficial to carers if it were invested in further increases in carer's allowance and in the type of community care services which would support them in their caring role."
Labour social welfare spokesman Willie Penrose reiterated his party's pledge to abolish the means test.
He said there were thousands of people in the State with a job which had a mandatory 365 days annual contract, no leave, holidays or bonus.
"Who are these people? They are carers who provide unpaid help for a family member or friend with a disability.
"Almost half of these carers have no paid employment and one-third of them give more than 43 hours of unpaid time per week. Fewer than one-fifth receive financial assistance from the State for their invaluable and tireless work."
Mr Penrose said there were 150,000 carers in the State. "The recent report by the National Economic and Social Forum indicates that unpaid care saves the Exchequer up to €2 billion every year. Carers are saving the State a vast amount of money which would arise if those people needed institutional care, without the capital expenditure needed to build such facilities. It is a no-brainer."
Mr Brennan said he had an open mind on the matter. "At some point the means test will not be worth the candle, but one must be careful when drawing the line. One must not give valuable State money through the welfare system to people who do not need it.
"This will happen with a universal system. I am aware that it costs four times as much to care for someone in residential care as it does in the person's home. At some stage, retaining a means test will no longer make sense."
Mr Brennan said that the means test had been eased significantly over the years. A couple with two children would be able to earn in the region of €36,000 annually and still qualify for the maximum rate of carer's allowance as well as the associated free travel and household benefits.
He had also increased the rates.
