Dáil debates

Thursday, 1 March 2007

3:00 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Question 8: To ask the Minister for Social and Family Affairs the number of people who registered for the homemakers' scheme due to not being automatically entered on to the scheme in 2004, 2005 and 2006 respectively; and if he will make a statement on the matter. [7991/07]

Photo of Dan NevilleDan Neville (Limerick West, Fine Gael)
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Question 31: To ask the Minister for Social and Family Affairs the number of people currently registered on the homemakers' scheme; the number registered with the scheme in 2004, 2005 and 2006 respectively; and if he will make a statement on the matter. [7990/07]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 8 and 31 together.

The homemakers' scheme was introduced in 1994 to protect the social welfare pension rights of those who take time out of the workforce for caring duties. The scheme allows up to 20 years from 1994 to be spent caring for children or incapacitated adults to be disregarded when a person's social insurance record is being averaged for State pension contributory purposes. Provision is also made for the award of credited contributions in the year in which a person commences or ceases to be a homemaker. The homemaker's scheme does not, of itself, qualify a person for that pension, as the standard qualifying conditions relating to the type and number of contributions paid or credited must also be satisfied.

The residency conditions of the scheme were changed in March 2005 so that, in effect, it is no longer necessary for a homemaker to reside with the person for whom he or she cares. In addition, the deadline to register as a homemaker has also been extended for those homemakers from 6 April 1994 to 31 December 2006, and applications will be accepted until 31 December 2007.

People in receipt of child benefit are automatically registered under the homemaker's scheme, as is the majority of applicants for carer's allowance, carer's benefit and the respite care grant. A total of 15,034 people have been registered under the scheme since its introduction in 1994. In 2004, some 1,760 people were registered, 1,569 people in 2005 and 1,055 in 2006. The majority of these are people who did not qualify for the means-tested carer's allowance scheme or who had no entitlement to credited contributions under that scheme.

As part of the new social partnership agreement Towards 2016, the Government is committed to producing a Green Paper on pensions. The homemaker's scheme will be reviewed in the context of the review. It is expected that the Green Paper will be finalised by the end of March 2007 and published thereafter. A consultation process will then take place and the Government will publish a framework for future pensions policy on foot of this discussion.

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Is the Minister satisfied that the scheme is being utilised to its maximum potential, given that the numbers he cited seem to have fallen in recent years? How does the Department advertise the scheme? Does the Department have figures on women undertaking home-making duties before 1994 who are unable to benefit from the scheme? Are there any estimates of the cost of the scheme to the State? What are the procedures for automatically registering people on the scheme?

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Many of these issues, including policy issues, are being examined in the context of the Green Paper. The residency condition of the scheme was changed in March 2005 when new legislation was introduced to bring it into line with the carer's schemes. A person can now qualify as a homemaker once he or she satisfies certain non-residency conditions. In effect, this means that it is no longer necessary for a homemaker to reside with the person for whom he or she is caring. I do not have a cost figure off-hand for the Deputy but I will see if I can obtain one for him. I take the Deputy's point and think the scheme could be used more. We will continue to promote it. A stay-at-home father who, for example, is caring for a child under 12 might consider registering. Any persons providing care to an incapacitated person aged 12 or over, and who has not claimed carer's allowance, carer's benefit or respite care grant, may also register as a home-maker.

We need to promote the scheme more and I am undertaking to do so. The Green Paper review will have to deal with some of the more medium and longer-term policy issues surrounding this scheme.

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Can people who looked after children under 12 in the home before the introduction of the scheme, qualify for the years after the scheme was introduced? Does the Minister have any plans to make the scheme retrospective to take into account people who took up home-making duties before the scheme was introduced? How many people looking after children at home do not currently qualify because they did not enter the scheme in time, in 1994?

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I do not think the latter figure, concerning the number of people who did not apply, would be available to me. As regards backdating, that precise item is being examined in the context of the Green Paper to see whether some backdating is possible. The question has been raised with me on several occasions.

Photo of Willie PenroseWillie Penrose (Westmeath, Labour)
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If the means test was abolished, is a carer's credit being considered for people who work a minimum number of hours per week along similar lines to the home-makers scheme? If so, it would give people an opportunity to have a credit so that when they reached pension age they would qualify for it based on their appropriate contribution rates.

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Is the Deputy referring to credited contributions for those who are in receipt of carer's allowances?

Photo of Willie PenroseWillie Penrose (Westmeath, Labour)
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Yes, ultimately.

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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That policy issue has been examined several times. I am in favour of trying to improve that situation whereby credits can be more available. It is one of the issues that I have asked my officials to look at in the context of the Green Paper.

Photo of Dan BoyleDan Boyle (Cork South Central, Green Party)
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What is the Minister's opinion on the recent OECD report which suggested that the tax allowance for staying at home should be removed? What would the consequences be in terms of social welfare for people who choose to stay at home and care for their families or relatives? It is an important part of our tax system and the Minister should have a view on it.

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I have many views on many issues.

Photo of Dan BoyleDan Boyle (Cork South Central, Green Party)
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I would have thought it has consequences for the social welfare budget.

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Yes, it has, but that OECD report dealt particularly with tax credits, which is a different subject. I will revert to the Deputy on that.