Catherine Murphy (Kildare North, Social Democrats)
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270. To ask the Minister for Employment Affairs and Social Protection if persons who work part-time or on a casual basis are classified as a dependant if their spouse is in receipt of a social protection payment; the impact this has in the context of their State pension entitlement; and if she will make a statement on the matter. [6483/18]

Regina Doherty (Meath East, Fine Gael)
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Social Protection payments are comprised of a personal rate payment for the claimant with an increase payable for a qualified adult and/or qualified child/children where applicable. An increase for a qualified adult (IQA) is payable in respect of a person who is wholly or mainly maintained by the claimant. This can be the claimant’s spouse, civil partner, or cohabitant or a person over 16 years of age who is caring for a qualified child of the claimant.

Not all people who work on a part-time or casual basis can be classified as a qualified adult on their spouse’s social protection payment as this depends on the level of their income. The spouse of the claimant is only regarded as being wholly or mainly maintained by the claimant where the weekly income of the spouse is less than €100 per week. If the spouse’s income is less than €100 per week a full rate increase for a qualified adult is payable.

Where the qualified adult has earnings or income in excess of €100 and up to €310 gross per week a reduced rate is payable for a qualified adult in the case of state pension contributory. A person in receipt of a state pension non-contributory may receive a reduced rate pension where their spouse is in employment or self-employment depending on the level of the spouse’s earnings.

In some cases where a person is entitled to an IQA on their payment, it may be that that the couple would be better off if the qualified adult made a claim in their own right. For example, it may be more financially beneficial for a couple if each of them claimed their own state pension.

Where a person is employed, including on a casual or part-time basis, they will be liable to PRSI once their earnings are over €38 per week in which case there won’t be a gap in their social insurance record.

The homemaker's scheme makes qualification for a higher rate of 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 for periods from 1994, allows up to 20 years spent caring for children under 12 years of age, or caring for incapacitated people over that age, to be disregarded when a person’s social insurance record is being averaged for state pension purposes. This has the effect of increasing the yearly average of the pensioner, which is used to set the rate of his or her pension.

It is difficult to assess whether periods of time spent as a qualified adult on a person’s social protection payment will impact on their own pension entitlement. This will depend upon a number of factors including:

- their PRSI record, from the time they first entered into social insurance;

- whether they qualify for the homemaker’s scheme;

- the legislation in place when they reach state pension age; and

- their future entitlements under means-tested pension options.

The fact of being a qualified adult on their spouse’s payment may or may not have any impact on a person’s eligibility for a state pension, depending on the person’s individual circumstances.