Seymour Crawford (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context

Question 376: To ask the Minister for Social and Family Affairs if he will take into account the difficulties of women who had to give up work because of the rules when they got married and now have not enough or any stamps for contributory old age pension; the number of people so affected; his views on whether they should be entitled to a full pension in their own right; and if he will make a statement on the matter. [25106/07]

Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context

In order to qualify for a State Pension (Contributory) a person must enter social insurance 10 years before pension age, pay a minimum number of contributions at the appropriate rate and achieve a minimum yearly average contribution rate over their working life. The qualifying conditions are designed to uphold the contributory principle that underpins social insurance payments generally, and to ensure that those qualifying have demonstrated an ongoing commitment to an appropriate rate of social insurance throughout their working life. Non-contributory pensions are available to those without the necessary contributions who can satisfy a means test.

The Government is anxious to ensure that as many people as possible should qualify for pensions in their own right. In this regard, qualifying conditions for contributory pensions have been eased and special pensions such as the pre-53 payment have been introduced. In the last two budgets particular emphasis has been placed on the non-contributory pensions with significant improvements in the means test and a higher rate of increase being granted than that given on the contributory side. These improvements are of particular benefit to older women who make up the majority of recipients of non-contributory pensions.

In addition, from 24th September 2007, qualified adult increases paid as part of State pensions will be paid directly to the spouse or partner. This change replaces the voluntary arrangements for separate payments which have been in place since 2002 and remain available to existing claimants. The Homemakers Scheme, introduced in 1994, protects the pension entitlements of those who leave work to care for children or incapacitated adults.

Despite these various measures, a significant number of people do not at present receive any support through the social welfare pensions system, either in their own right or as qualified adults. Overall, it is estimated that there are some 47,000 people at present outside the system and about 30,000 of these are women. These include former public servants, self-employed people and/or their spouses who do not have the necessary contributions for contributory payments and cannot satisfy a means test. It is not possible to estimate how many of the group were required to leave employment when they married.

The recently published Green Paper on Pensions includes a discussion on various issues relating to social welfare pensions. This includes the position of people who do not receive any payment for various reasons related to qualifying conditions, previous policies and societal norms, together with the implications of making provision for them. Decisions in relation to this group will be made in the context of the framework for future policy which will be developed following the Green Paper consultation process which is now underway.