Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

Over the past months the Minister, Deputy Doherty, has been considering how and when to address the issue of the 42,000 people who were affected by the pension rate band changes in 2012. We listened and we worked on a solution. This week, the Government formally approved a positive change in the pension system. The announcement means that a new total contributions approach will be available to pensioners who were affected by the 2012 changes and will include up to 20 years of a new home carer credit. This approach will significantly benefit many people, particularly women but also men, who may have taken time out from the workforce to look after children or to care for parents, and whose work history includes an extended period outside the paid workplace while they raised families or performed other caring roles.

Under the total contributions approach, the pension given will more closely match the contributions made. I believe this to be fair. This approach will make it easier for pensioners who are assessed under the yearly average model to qualify for a higher rate of State pension. The total contributions approach, TCA, will ensure that the totality of a person's social insurance contributions - as opposed to the timing of them - will determine the final pension outcome. The Minister has worked closely with the Fianna Fáil spokesperson in this area and with those from other parties. The measure will cost the State some €40 million this year so it is a significant change that we should welcome rather than look to undermine.

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