Joan Burton (Dublin West, Labour)

I will deal with the changes to the numbers of contributions required for widow's, widower's and civil partner's contributory pension. There are 113,860 people in receipt of a contributory pension at a cost of €1.3 billion to the State. There are about 2,000 people receiving non-contributory widow's, widower's or civil partner's pension at a cost of €19 million. We spend a relatively large amount of money on widow's, widower's and surviving civil partner's pensions.

The issue relates to demographics and ageing. Thankfully, for those who lose a husband, wife or partner, this happens when they are older. Under our system, to qualify for an old age pension, one needs to have ten years' contributions. However, to receive widow's, widower's or surviving civil partner's pension, one needs to have three years' contributions. It is important to bear in mind that these may be the contributions either of the surviving or deceased spouse. I point out to Senator Mary White that the entitlement to a pension is not limited to the survivor's contributions but extends to the contribtuions of the deceased person.

In the case of a widow, whose husband was at work, it is generally highly likely that her deceased husband would have had at least three years' contributions. From the end of 2013, there will be a requirement to have five years' contributions. However, a person seeking to receive old age pension will be required to have ten years' contributions. We are very much taking into account the shock to the surviving spouse of the death of his or her spouse in making the contributions requirement significantly lower than for contributory old age pension. That has been a feature of the social welfare system that has been supported by all parties in the House and it should continue to be supported, as it is a great shock for a married person when his or her spouse dies. Many are aware of people in their own families and the difficulties losing a spouse poses.

Where a younger person loses a spouse, he or she may be still in work. Under the system that person will receive widow's or widower's pension. We are increasing the required number of contributions from the end of 2013 by two years. As Senator Paschal Mooney was concerned about a wife who worked in the home and whose deceased husband had lost his job, provided that she has built up by 2013 either five years of paid contributions or a mixture of paid contributions and credits, she will qualify for widow's pension.

The threshold is very generous. The reason it has increased is that the population is larger. It is not appreciated that for the past ten years a significant percentage of the increased cost of social welfare under all the headings has to do with the increase in population. We are blessed to have more children and that more older people are living longer, but the consequence for the social welfare bill, leaving aside all other events, is that, based on population statistics, it continues to go up and up. We must design the structure of the system in a way that we will have sufficient contributions going into the fund during the working lives of people in order that when there are difficult events such as the bereavement of a spouse, we will have enough money to provide for a decent level of widow's and widower's pension.

To return to Senator Brian Ó Domhnaill's point, it is important to communicate that anyone currently out of work or working in the home should sign on for credits. I will take into account the comments made on conducting an information campaign. The Department funds the Irish National Organisation of the Unemployed to produce a very fine booklet every year on the social welfare changes made. We also do this with a number of other organisations, including the MABS and the Citizens Information Board which also give information to individuals. It is important that people be fully aware that they are entitled to sign on for credits.

Senator Mary White asked about the most difficult points for women and children in the history of introducing budgets. One of the most difficult was the change to individualisation because the basis of the system was changed. The traditional two-parent family, with one parent engaged full-time in work and the other working in the home, was treated differently. We are discussing those in receipt of social welfare payments, but we must bear in mind that many low income workers in single income families do not rely on such payments. The individualisation model was adopted by the former Minister for Finance, Charlie McCreevy, and such families would normally only be in receipt of child benefit. Hence, its universality is important to them to give them a leg up. I have, therefore, asked a working group to consider these issues. It is probably a question of aligning the IT used in Revenue with that used in the social welfare system in order that we can move to using a universal credit system, as championed by Dr. Seán Healy for a long time. If benefits were provided through the tax system, they would be refundable if one's income was low and counted for tax purposes if one's income was high. Our systems are not yet there.