Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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2. To ask the Tánaiste and Minister for Social Protection how she can reconcile her promise to increase the State pension by €25 over five years with the ever-growing numbers entitled to a reduced State pension as a result of the changes she made to the qualification criteria in budget 2012. [1250/16]

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Cosúil leis na Teachtaí eile, déanaim comhghairdeachas le Peter Finnegan faoin ardú céime agus an jab nua atá aige. Jab deacair é d'aon duine, go háirid sa tréimhse seo sa Teach.

I wish to ask the Tánaiste if there is a contradiction in electoral promises so far to increase the State pension at a time when, as a result of her actions, more pensioners, particularly women, will qualify only for a reduced State pension.

Joan Burton (Dublin West, Labour)
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The State contributory pension is based on contributions paid and credited over the course of a working life and is not subject to means testing. I increased the maximum weekly personal rate in the recent budget to €233.30, with proportionate increases for qualified adults. There were more than 360,000 recipients of that pension at the end of last year, with expenditure in 2016 now estimated at just over €4.6 billion.

A number of changes were made to the State contributory pension in the past five years in the context of State pension reform and to provide for sustainable pensions in the future.

These included changes to the payment bands for those with a yearly average of between ten and 39 contributions per year. According to my Department's records, some 28,000 pensioners in this category may have been impacted by those changes, although this would be expected to change over time.

Reforms such as this and increases in the pension age have safeguarded the pension system and its core rates, despite very significant demographic pressures and the economic crisis. By achieving this, even in such difficult circumstances, the Government has shown its commitment to supporting older people, as evidenced by CSO figures for consistent poverty which are lowest among pensioners. Now, thanks to the economic policies we have pursued, we have been able to move into a real recovery. In the 2016 budget, this allowed us to increase the maximum personal rate of State pensions by €3 per week. This will benefit more than 676,000 pensioners and their dependants this year.

Looking ahead, the appropriate level of the State contributory pension is all about adequacy and affordability. I am confident that, as our economy continues to grow on a sustainable basis, it will allow us to continue to increase the level of support for people aged 66 and over and, in particular, to take account of inflation. In this regard, I am pleased that the Social Insurance Fund, which had a deficit of almost €2.8 billion in 2012, is expected to have a small surplus in 2016. This means contributory pensions are secure. When I became Minister, the Social Insurance Fund deficit meant contributory pensions, widow's and widower's pensions, maternity benefit and the future paternity benefit, which we will introduce in September, were at risk. I am happy to say we have secured the future of the State pension.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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The context of the change must be taken into account. I would not begrudge any pensioner an increase and I firmly believe the pension should be increased and, thereafter, index linked. The Minister's changes over recent years have ensured that more of those who apply for the State pension will qualify for a reduced amount, given that she has increased the paid contributions required from 260 to 520. She has also changed the rate band, which will mean women will be affected more harshly, given that over recent decades more women are in precarious work and often take time out of paid employment to look after family.

I ask the Minister to address the problems her actions have caused in the changes she introduced in the 2012 budget and consider another type of homemaker's credit which would plug the gap that has been identified not only by me, but by the National Women's Council of Ireland, to address the gap in the paid contributions of women who have had to leave work to take care of people or who have had the misfortune to be in low-paid work or on short-term contracts so they can fully qualify for full pensions.

Joan Burton (Dublin West, Labour)
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For people who have insufficient contributions to qualify for a full contributory State pension, there are supports available in the State pension system which assist qualification for a contributory payment based on factors such as the contributions made by their spouses and other factors likely to impact on their needs. One example is the homemaker's scheme.

I was one of the people in the Fianna Fáil-Labour Party Government of the early 1990s who introduced the homemaker's scheme that has been mentioned by the Deputy. Together with the then Minister, Michael Woods, I was responsible for bringing in the system of homemaker's credits to which the Deputy has referred. This system recognises the value of the contribution made by people when they take time out to care for children or elderly relatives. We have also provided for increases for qualified adults and for credits for periods of unemployment. As the Deputy knows, the credits system is now done automatically. In the era about which he spoke, in many cases people did not go for credits. A widow can qualify for the widow's contributory pension on the basis of her PRSI record. People with insufficient contributions may qualify for a non-contributory means-tested pension to ensure they have a pension of a sufficient level.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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While I welcome the Tánaiste's statement, I do not think it is entirely accurate. The homemakers credit system gives grossly insufficient protections to women, in particular. It does not go back far enough. As far as I know, it allows for or takes account of just one break. The Tánaiste mentioned that the jobseeker's credit is available to those who are looking for work. As I have said on a number of occasions, a person not in employment who is a qualified adult does not get a credit for that. That person's partner gets the credit instead. A number of women, in particular, are the qualified adults in these cases. Even though they are in the system, there is no record or recognition of them. Will the Tánaiste address the shortfalls in the homemakers credit? Will she reconsider the changes she introduced supposedly to save money? It seems that rather than reversing those changes, the Tánaiste intends to throw this money at the pensions system. Will she ensure women, in particular, are not negatively affected by the changes that have been made in the State pension system over the term of this Government?

Joan Burton (Dublin West, Labour)
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If we had taken the Deputy's advice, we would have followed the Greek path and we would have bankrupted our pensions system. When I came into office here, the deficit or hole in the Social Insurance Fund was going past €2 billion. It ultimately went to €2.8 billion, but we have now brought it almost completely back into balance.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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The Government made the pensioners pay for that.

Joan Burton (Dublin West, Labour)
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I will set out what we actually did for pensioners this year and last year. We brought back the Christmas bonus. This year, we have brought in a modest increase of €3 a week. That has assisted pensioners and pro ratatheir dependants.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Some pensioners are down €1,100 a year and the Government has not made that up.

Michael Kitt (Galway East, Fianna Fail)
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Deputy, please. The Tánaiste has the floor.

Joan Burton (Dublin West, Labour)
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The country lost 330,000 jobs.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Is the Tánaiste blaming the pensioners for that?

Joan Burton (Dublin West, Labour)
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Sinn Féin's response was to suggest that we should go down the Greek path, follow Syriza and bankrupt the country.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Sinn Féin has not been in government. We are debating the response of the Government, which was to attack the pensioners.

Joan Burton (Dublin West, Labour)
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We saw the pictures of the poor pensioners at the ATMs who were not able to-----

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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The Government made the poor pensioners poorer. We did not do that.

Michael Kitt (Galway East, Fianna Fail)
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We have to go on to the next Deputy.

Joan Burton (Dublin West, Labour)
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Sinn Féin's crazy economics would actually see our pensioners follow the Greek path.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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We are talking about the crazy economics of those who are in government.

Michael Kitt (Galway East, Fianna Fail)
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I want some order now, please.

Joan Burton (Dublin West, Labour)
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That is what Sinn Féin suggested.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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The Tánaiste should stand up for the Government's decisions.

Joan Burton (Dublin West, Labour)
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That is what Sinn Féin suggested.