Willie Penrose (Westmeath, Labour)
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Question 204: To ask the Minister for Social and Family Affairs if he will give consideration to awarding all home-makers of pensionable age an individual non-contributory pension; and if he will make a statement on the matter. [2727/05]

Séamus Brennan (Dublin South, Fianna Fail)
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A number of arrangements in the social welfare code take account of the work of people in the home for pension purposes. The Government is committed to extending pension cover to as many people as possible. A number of measures which have been introduced in recent years make it easier for people to qualify for pensions. I refer, for example, to extended social insurance coverage and an easing of the qualifying conditions for old age contributory and retirement pensions. The latter measures are of particular benefit to women who may have less than complete social insurance records due to working in the home. In 1997, the yearly average number of contributions required for pension purposes was reduced from 20 to ten. In 2000, a special half rate pension was introduced based on pre-1953 insurance contributions. Pro rata pensions are also available to allow people with mixed rate insurance records to receive a payment.

The Government is committed to increasing the payment for qualified adults aged 66 or over to the same level as the personal rate of the old age non-contributory pension. In this regard, a number of special increases have been given over several budgets in pursuit of this target. Since October 2002, new pension claimants can opt to have the part of the payment in respect of their spouse or partner paid direct to that person.

The homemaker's scheme was introduced in 1994 to protect the pension entitlements of those who take time out of the paid workforce for caring duties. The scheme allows up to 20 years to be disregarded when a person's insurance record is being averaged to assess entitlement for contributory pension purposes. The scheme will not of itself qualify a person for a pension as the standard qualifying conditions relating to the type and number of contributions paid or credited must also be satisfied.

The scheme is being reviewed as part of the second phase review of the qualifying conditions for the old age contributory and retirement pensions. The review is due for completion in the next few months and developments in respect of the homemaker's scheme will be considered in the light of the conclusions of the review.

The old age non-contributory pension is a social assistance scheme designed to provide financial support for older people who do not qualify for one of the contributory pension schemes. Like other social assistance schemes, it features a means test which is intended to ensure that available resources are targeted at those who are most in need. In this regard, budget 2005 provides for the disregard of the first €20,000 of savings or other assessable assets, such as shares or bonds, when means are being assessed. The operation of the means test is kept under review and changes are made as required.