Patrick Nulty (Dublin West, Labour)
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To ask the Minister for Social Protection if she will amend the 1994 homemaker scheme to make it retrospective in view of the impact of changes to the pension system in view of the fact that it is adversely impacting on women born between 1946 and 1954; and if she will make a statement on the matter. [40762/12]

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

There are a number of significant challenges currently facing the Irish pension system. At present, there are 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. Therefore, the task of financing increasing pensions will fall to a diminishing share of the population. With increases in life expectancy, more people are living to pension age and living longer in retirement and the period for which a 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 and for the sustainability of pension provision into the future. In addition to this, spending on social protection accounts for nearly 40% of current Government expenditure and in the context of the current fiscal crisis savings have to be found in the social welfare system.

For this reason there are no plans to extend the homemakers scheme as outlined by the Deputy.

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 SPC. Alternatively, they may qualify, depending on their means, for a higher rate of State pension (non-contributory).