Bernard Allen (Cork North Central, Fine Gael)
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Question 82: To ask the Minister for Social and Family Affairs the number of women who availed of unpaid maternity benefit in each of the years 2000 to 2004, inclusive; the cost of such payments to his Department in terms of PRSI credits issued in each of those years; and if he will make a statement on the matter. [11887/05]

Séamus Brennan (Dublin South, Fianna Fail)
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Credited contributions have been an integral part of the social insurance system since its inception. Credits are awarded to protect the entitlements of insured workers by covering gaps in insurance wherein the worker is not in a position to pay PRSI. A common situation where credits are awarded is where a person is unemployed for a period and is in receipt of a payment. However, over time the award of credits has been extended to cover many circumstances such as where social welfare payments are made — such as maternity benefit — and other circumstances where payments are not paid — such as with unpaid maternity leave.

For each week during which a woman is on unpaid maternity leave but does not receive maternity benefit, a contribution may be credited subject to a maximum of 18 weeks of ordinary leave. However, the number of such cases is quite low because of the fact that coverage for maternity benefit extends to most employees and self-employed. Credited contributions have also been awarded for an additional unpaid period of maternity leave after paid maternity benefit with effect from March 2001. In such cases the maximum number of credits awarded is eight.

As it is difficult to attribute the total number of credits awarded to unpaid maternity leave, and not for any other reason, reliable information regarding such credits is not readily available. However, based on such information as is available to the Department, it is estimated that some 50% of women who have been on maternity benefit apply for credits for the subsequent period. On the basis of claims for maternity benefit in 2004, it is estimated, therefore, that some 16,500 women availed of the period of unpaid leave and were awarded credits as a result.

In respect of the question of the cost of credited contributions for unpaid maternity leave, it is the payment of a benefit rather than the award of the credit per se that has direct cost implications for social welfare spending. They arise on foot of the benefits awarded for which credited contributions were included to fulfil contribution conditions. Costing the payments made on foot of the award of credits would not be possible as the costs arising would vary according to the type of benefit or pension being paid as a result of credits being awarded, the duration of the payment and various other factors such as the age of the client, their family status and their attachment to the labour force. In addition, in deriving the cost of credits, account would have to be taken of cost to the Exchequer for workers who did not qualify for social insurance based benefits who would as a consequence claim social assistance payments.

For these reasons, it is not possible to cost the award of credited contributions for unpaid maternity leave.