Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 128: To ask the Minister for Social Protection her plans to extend the homemaker's scheme to include persons whose youngest child is over 12 years in 1994 because these women are currently entitled to nothing. [15930/12]

Joan Burton (Dublin West, Labour)
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The homemaker's scheme was introduced in 1994 to make qualification for State pension (contributory) (SPT) easier for those who take time out of the workforce for caring duties. The scheme allows up to 20 years spent caring for children under 12 years of age or incapacitated adults to be disregarded when a person's social insurance record is being averaged for pension purposes.

The scheme will not, of itself, qualify a person for a pension. The standard qualifying conditions, 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 10 contributions on their record from the time they enter insurance until they reach pension age, must also be satisfied. From April 2012, 520 contributions (10 years) will be required.

As the Deputy is no doubt aware, the challenges facing the Irish pension system are significant. There are currently six people of working age for every pensioner and this ratio is expected to decrease to approximately two to one by 2050. In addition, those aged over 65 will account for a greater proportion of the population while the proportion who are of working age is expected to decline. With increases in life expectancy, more people are living to pension age and living longer in retirement. The period for which an average pension will be paid will be greater than the period for which a pension is paid at present. This has obvious and significant implications in relation to the future costs of State pension provision.

For this reason, and in the context of the current fiscal crisis, there are no plans to extend the homemakers scheme as outlined by the Deputy. I am, however, currently considering the introduction of a system of homemaker's credits to replace the current disregard from 2012 and allow backdating to 1994 for the purpose of the averaging system that will continue until the total contributions system is introduced in 2020. This means that people reaching pension age could have credits rather than disregards applied to their records to cover periods of care since 1994 (up to a maximum of 20 years).

People who do not qualify for the homemakers scheme as they had caring duties prior to the introduction of the scheme in 1994 may qualify for a reduced rate of SPC as a yearly average of only 10 along with 10 years' paid contributions over a working career is sufficient to qualify for a minimum SPT. Alternatively, they may qualify, depending on their means, for a higher rate of State Pension (Non-Contributory).