Written answers

Tuesday, 27 September 2016

Department of Social Protection

Carer's Allowance Data

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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460. To ask the Minister for Social Protection the projected cost in 2017 of paying a full PRSI stamp for those in receipt of the carer's allowance. [27524/16]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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One of the main principles of social insurance is that paid PRSI contributions are awarded to employed and self-employed workers based purely on the payment of PRSI on their income from employment. The payment these contributions allow workers to build up entitlements to benefits if and when certain contingencies arise in the future. This underpins the funding of the social insurance system as contributions paid in in a particular year are used to fund benefits paid out.

People in receipt of carer’s allowance are not in insurable employment or self-employment (unless they are working outside the home). PRSI contributions are not and never have been charged on social welfare payments. Therefore, it is not possible to provide a cost as sought by the Deputy.

Recipients of carer’s allowance may however maintain their social insurance record through the award of credited contributions.

Credited contributions, normally known as credits, are awarded to recipients of carer’s benefit and of carer’s allowance where they have an underlying entitlement to credits. Recipients of these payments qualify for credits where they have at least one paid contribution in the previous two years or have had credited contributions in that period. Credits are also awarded to workers who take unpaid carer’s leave from work.

Credits protect social insurance entitlements by bridging gaps in an employee’s social insurance record, where they are not in a position to pay PRSI, such as during periods spent caring. In combination with paid PRSI contributions, credits assist employees in qualifying for short-term schemes and enhance the level of benefit for long-term schemes.

In addition, all carers, including those who do not qualify for a payment or for credits, may qualify for the homemaker scheme. The homemaker’s scheme is designed to help homemakers and carers qualify for state pension (contributory). Years spent caring on a full-time basis (subject to a maximum of 20 years) are disregarded when calculating the state pension (contributory) rate of payment.

My priority is to make progress on the commitment in our Programme regarding the level of support for carers, subject to the resources available.

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