Joanna Tuffy (Dublin Mid West, Labour)
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Question 125: To ask the Minister for Social Protection the position regarding plans for a credit based system, under the home makers scheme which will grant credits to persons for time spent home making; and if she will make a statement on the matter. [24498/12]

Joan Burton (Dublin West, Labour)
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The homemaker scheme makes qualification for the State pension (contributory) easier for those who take time out of the workforce for caring duties. The scheme was introduced in and took effect from 1994. 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.

To be eligible for the homemaker scheme, a person must:

· Permanently live in the State;

· Be aged under 66;

· Have started insurable employment or self-employment on or after the age of 16 and before the age of 56;

· Not work full-time, although a person can work and earn less than €38 gross per week;

· Care for a child (under 12) or an incapacitated person on a full-time basis.

The homemaker disregard (or the homemaker credit) 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 520 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.

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. 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 is being considered.

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 State pension (contributory) as a yearly average of only 10 along with 10 years' paid contributions over a working career is sufficient to qualify for a minimum pension. Alternatively, they may qualify, depending on their means, for a higher rate of State pension (non-contributory).