John Deasy (Waterford, Fine Gael)
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Question 103: To ask the Minister for Social and Family Affairs his views on the awarding of pre-entry credits to people who have been absent from the workforce for a considerable time as a result of care duties; and if he will make a statement on the matter. [23088/06]

Séamus Brennan (Dublin South, Fianna Fail)
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The primary purpose of credited contributions is to protect the social insurance entitlement of insured workers who, for reasons relating either to incapacity, ill-health, unemployment or the provision of care (i.e. for children, the elderly or those with a disability) are not in a position to make PRSI payments.

As a general rule, in order to qualify for credits, a person must be an employed contributor insured under PRSI Classes A, B, C, D, E or H. A recent attachment to the workforce is necessary to avail of credits in that he or she must have paid or credited contributions made in the last 2 complete income tax years. Where a worker has no recent contributions paid or credited, entitlement to credits can be re-established as soon as 26 contributions have been paid.

Pre-entry credits are awarded only once in a person's working life to individuals when they have commenced as an employee for the first time. Credited contributions are designed to assist in establishing entitlement to short-term benefits as soon as possible after commencing employment. There is no legal provision for the award of credited contributions to those who re-enter the workforce as an employee having been temporarily absent from the active labour force.

However, a range of alternatives are available to workers who withdraw from the work force temporarily. These include the homemakers scheme and the voluntary contributions scheme. The Homemakers Scheme aims to protect the old age pension rights of individuals who take time out from the workforce to care for either children (aged 12 years or younger) or incapacitated relatives. This scheme — introduced in April, 1994 — works by disregarding up to 20 full years spent on caring duties when averaging a person's social insurance record for pension purposes. The voluntary contribution scheme allows previously insured workers to maintain their entitlement to long-term benefits through the payment of voluntary PRSI contributions directly to my Department.

Furthermore, my Department operates a number of schemes that cater exclusively for the needs of carers. These schemes provide both means-tested and social insurance-based payments to eligible claimants. The Carer's Allowance is a means-tested payment directed at carers on low incomes who live with and look after persons who require full-time attention. Carer's Benefit is a weekly social insurance payment that is based on PRSI contributions and that supports individuals who are entitled to statutory carer's leave and who give up their job temporarily in order to care for someone. Payments made under both these schemes may also qualify for the award of credited contributions for the duration of the payment.

The range of social welfare supports available to carers is quite comprehensive and has been enhanced considerably in recent years. Budget 2006 contained very significant improvements in the level of support afforded to carers — including the biggest ever increases in the rates of social welfare payments available to them.

I am satisfied that the circumstances in which credited contributions are awarded does not warrant re-examination at this stage. However, my Department constantly monitors the need for amendments or modifications to existing provisions to ensure that the social insurance system continues to meet social protection needs in a changing work and social environment.