Frances Fitzgerald (Dublin Mid West, Fine Gael) | Oireachtas source

I have outlined the actions that have been taken already. We recognise that women who have taken time out are at risk in terms of pension rates. It is expected that the total contribution approach will replace the yearly average approach for new pensioners from 2020. The aim of this approach is to make the rate of contributory pension more closely matched to contributions made by a person. This is a very significant reform with considerable legal, administrative and technical elements in its implementation. An important element in the final design of the scheme will be the position of women who have gaps in their contribution records as a result of caring duties. That factor is of course being considered very carefully in terms of developing this reform. The Minister, Deputy Regina Doherty, is currently working with her Department on the detailed development of the total contribution approach with a view to making proposals for consideration later in the year.

It is then intended to have a public consultation which will provide an opportunity for people to submit their views on the proposals. Following this consultation process, proposals on the final details of the scheme will be made to the Government. That is an important element of dealing with this issue. The Minister is engaging on that work and an important part of it will be to examine the issue of women who have gaps in their contribution records as a result of caring duties. Serious account will be taken of this when dealing with this reform.

If one committed to backdating the homemaker's scheme or changing the rate bands, it would cost between €200 million and €300 million. The rate changes reversal would come to €60 million in 2018, rising by an additional €10 million per year. The issue is on the agenda and is being considered by the Minister. It will be an important part of the reform she is examining with the total contribution approach. The whole aim of that is to ensure the rate of contributory pension more closely matches the contributions made by a person but taking account of gaps in women's contribution records.

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