Written answers

Tuesday, 25 October 2005

Department of Social and Family Affairs

Social Welfare Benefits

9:00 pm

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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Question 388: To ask the Minister for Social and Family Affairs his plans to introduce contributory old age pensions for home carers in their own right; and if he will make a statement on the matter. [30195/05]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 394: To ask the Minister for Social and Family Affairs the estimated number of persons who could claim contributory pensions under the homemaker's scheme introduced in 1994; if dates were agreed for disregards being considered from 1979 when PRSI replaced flat rate contributions or 1973 at the time the marriage ban was abolished; and if he will make a statement on the matter. [30661/05]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 395: To ask the Minister for Social and Family Affairs the way in which he proposes to recognise, in the context of pension reckonable credits, the contribution of persons who gave up paid work for positions to undertake caring duties in the home on a full-time basis either for child care or elder care purposes; and if he will make a statement on the matter. [30662/05]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 396: To ask the Minister for Social and Family Affairs the progress made since March 2000 in regard to deciding on a suitable date for the establishment of disregards under the homemaker's scheme introduced in 1994 for eligibility for pension rights for persons caring for children under 12 years on a full-time basis; and if he will make a statement on the matter. [30663/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 388 and 394 to 396, inclusive, together.

The social welfare pension rights of those who take time out of the workforce for caring duties are protected by carer's benefit, carer's allowance and the homemaker's scheme.

The carer's benefit and allowance schemes are designed to provide financial support while the homemaker's scheme, which was introduced from 1994, is different in nature in that it is intended to mitigate the effect of periods spent on caring duties when a person's insurance record is being averaged for pension purposes. Subject to qualifying conditions, credited contributions are awarded for each week when a person receives either carer's benefit or allowance. However, the homemaker's scheme operates differently in that it allows up to 20 years spent on caring duties to be disregarded when a person's insurance record is being averaged to assess entitlement for contributory pension purposes. For any year to be disregarded, a homemaker must be out of the workforce for a complete year, 52 weeks, from 6 April 1994. Provision is also made for the award of credited contributions in the year in which a person commences or ceases to be a homemaker.

However, it must be borne in mind that the scheme will not of itself qualify a person for a pension. The standard qualifying conditions for pensions, which require a person to enter insurance ten years before pension age, pay a minimum of 260 contributions at the correct rate and achieve a yearly average of at least ten contributions on his or her record from the time he or she enters insurance until he or she reaches pension age, must also be satisfied.

The Government is anxious to ensure that as many people as possible can qualify for pensions in their own right. A number of measures have been introduced over the years which make it easier for people to qualify for pensions. These include the reduction in the yearly average number of contributions required for pension purposes from 20 to ten and the special half-rate pension based on pre-1953 insurance contributions. Pro rata pensions are also available to allow people with mixed rate insurance records to receive a payment and this is of benefit to people who may have worked in both the public and private sectors. This set of measures is of particular benefit to women who may have less than complete social insurance records due to working in the home. It is estimated that approximately 87% of women aged 65 years of age are at present receiving social welfare support, either in their own right or as qualified adults on the pension of their spouse or partner.

There are those who will not benefit from the homemaker's scheme and who cannot qualify for a pension in their own right. In this regard, the Government is committed to increasing the payment for qualified adults, age 66 or over, to the same level as the personal rate of the old age non-contributory pension and to facilitate the direct payment of the allowance to spouses and partners. A number of special increases have been given over several budgets in pursuit of this target, totalling €56.47 per week since April 2000. Also, since 2002, new pension claimants can now opt to have the qualified adult allowance paid directly to their spouse or partner. The administrative and legislative implications of enhancing these provisions are being examined to ensure that more qualified adults can receive a personal payment.

In August 2000, the Department published a review of the qualifying conditions for old age contributory and retirement pensions. This review also included a general examination of the homemaker's scheme and suggested a number of reforms for further consideration. These included the possibility of changing the operative date of the scheme and replacing the disregard system with one based on actual credited contributions. In general, changes to insurability of employment, etc., are not backdated and the same principle was applied to the homemaker's scheme in 1994. Apart from that there would be practical difficulties in certifying periods of caring and very significant costs involved. It is difficult to suggest a date that would be equitable. One of the dates suggested was 1953 when the unified system of social insurance came into operation. A case could equally be made to backdate to 1973 when the marriage bar was removed. However, many of those who left employment due to its operation were public servants who were in most cases never insured for social welfare pension purposes. Their pension fell to be paid through their occupational pension arrangements and the solution to their difficulties should perhaps be considered in that context. Other dates mentioned are 1979 when the PRSI system was introduced or 1988 when the system of social insurance became almost universal with the inclusion of the self employed. Any date other than 1953 would result in large groups being excluded.

It is not possible to estimate the number of people who would qualify for contributory pensions having availed of the homemaker's scheme as each person's working record must be examined to determine his or her eligibility for a pension.

I am at present examining aspects of the social welfare pension system. This includes the relationship between contributory and non-contributory schemes and the operation of means testing in the context of old age non-contributory pension. The needs of people who are outside the social welfare pensions system, including those excluded by virtue of time spent on caring duties, may be best addressed in the context of that review.

Photo of Seán HaugheySeán Haughey (Dublin North Central, Fianna Fail)
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Question 389: To ask the Minister for Social and Family Affairs if the household benefits package and free travel will be awarded to all widows and widowers over 50 years of age even in cases where the late spouse was not receiving these benefits; and if he will make a statement on the matter. [30225/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The household benefits package, which comprises the electricity-gas allowance, telephone allowance and television licence schemes, is generally available to people living permanently in the State, aged 66 years or over, who are in receipt of a social welfare type payment or who satisfy a means test.

The package is also available to carers and people with disabilities under the age of 66 who are in receipt of certain welfare type payments. People aged over 70 years of age can qualify regardless of their income or household composition. Widows and widowers aged from 60 to 65 whose late spouses had been in receipt of the household benefits package retain that entitlement to ensure that households do not suffer a loss of entitlements following the death of a spouse.

A range of proposals, including that referred to by the Deputy, have been made to extend the coverage of the household benefits package. These proposals are kept under review in the context of the objectives of the scheme and budgetary resources.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 390: To ask the Minister for Social and Family Affairs when a person (details supplied) in County Mayo will be approved for the free schemes. [30270/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The person concerned has been awarded an electricity and telephone allowance with effect from 12 March 2005. The relevant service providers have been notified to apply the allowances to the customer's account.

A free lifetime television licence has also been awarded with effect from the expiry date of the customer's current TV licence. If the person concerned has purchased a TV licence since 12 March 2005, it should be forwarded to the Free Schemes Section, Pension Services Office, College Road, Sligo, and a refund of the cost will be made.

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