Róisín Shortall (Dublin North West, Social Democrats)
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606. To ask the Minister for Social Protection if she will consider allowing carer's allowance to be classed as a recordable contribution for the purpose of eligibility for contributory pensions in view of the expense that is spared to the State through persons taking on caring roles themselves as opposed to having to engage residential or other care; and if she will make a statement on the matter. [31389/17]

Róisín Shortall (Dublin North West, Social Democrats)
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607. To ask the Minister for Social Protection the estimated cost of allowing for carer's allowance to be classed as a recordable contribution for the purpose of calculating eligibility for contributory pensions. [31390/17]

Regina Doherty (Meath East, Fine Gael)
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I propose to take Questions Nos. 606 and 607 together.

The social insurance system currently provides recognition of the contribution of recipients of carer’s allowance and full-time carers generally, through the system of credited contributions and the homemaker’s scheme.

Credited contributions (credits) are awarded to recipients of carer’s allowance where they have an underlying entitlement to credits. Recipients of this payment qualify for credits where they have at least one paid contribution in the two years prior to commencement of caring 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 can assist employees in qualifying for short-term schemes such as jobseeker’s benefit and enhance the level of benefit for long-term schemes such as the State pension contributory (SPC). In the latter case, once someone has 520 paid contributions over the course of their working life – the first condition for eligibility for the SPC, credits have the same value as paid contributions when the calculation to determine the yearly average number of contributions paid or credited. The year average determines the rate of pension payable.

In addition, all carers, including those who are not on a welfare payment or who do not qualify for credits, may qualify for the homemaker’s scheme. The homemaker’s scheme is designed to help homemakers and carers qualify for the SPC and applies to homemaking periods since 6 April 1994. It equally applies to both men and women.

The scheme provides that years spent working in the home while caring on a full-time basis for a child up to 12 years of age or an incapacitated person age 12 or over will be disregarded in calculating a person's yearly average number of contributions.

It is not possible to cost, even on a tentative basis, the granting of contributions for periods spent on carer’s allowance or on other homemaking periods as the impact on the rate of State pension which would be payable (and associated costs) would be largely dependent on periods spent in the paid workforce in the past and potential future periods in similar employment.