Claire Kerrane (Roscommon-Galway, Sinn Fein)
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1004. To ask the Minister for Employment Affairs and Social Protection the status of the provision of a State pension solution for carers as committed to in the programme for Government; and if she will make a statement on the matter. [19764/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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This Government acknowledges the important role that carers play and is fully committed to supporting them in that role.  The Programme for Government “Our Shared Future” includes a commitment to examine options for a pension solution for carers, the majority of whom are women, particularly those of incapacitated children, in recognition of the enormous value of the work carried out by them.  

The Pensions Commission was established in November 2020 to examine the sustainability of the State Pension system and the Social Insurance Fund.  The Commission’s terms of reference included consideration of how people who have provided long-term care for incapacitated dependants can be accommodated within the State Pension system. 

The Pensions Commission’s Report which was published on 7th October 2021, established that the current State Pension system is not sustainable into the future and that changes are needed.  The report set out a wide-range of recommendations in relation to the State Pension system and Social Insurance Fund.  It recommended that long-term carers (defined as caring for more than 20 years) should be given access to the State Pension (Contributory) by having retrospective contributions paid for them by the Exchequer for any gaps in their contribution history arising from that caring.  The Commission also recommended that relevant Departments should  examine, in conjunction with relevant stakeholders, options for the creation of a statutory "Family Carer Register" which could, in time, facilitate the identification of long-term carers for State Pension (Contributory) purposes as well as assisting in the planning and delivery of services for family carers. 

In the interests both of older people and of future generations of older people, the Government intends to consider the comprehensive and far-reaching recommendations in the Pensions Commission’s Report very carefully and holistically.  My officials are examining each of the recommendations and consulting across Government through the Cabinet Committee system.  The views of the Joint Oireachtas Committee on Social Protection, Community and Rural Development and the Islands and the Commission on Taxation and Welfare will be considered as part of the Government’s deliberations.

It is really important that we complete that work before reaching conclusions on any one recommendation, such as the recommendations related to long-term carers.  In this regard, I intend bringing a recommended response and implementation plan to Government in the coming weeks.  

As the bedrock of the pension system in Ireland, the State Pension is extremely effective at ensuring that our pensioners do not experience poverty.  This Government is committed to ensuring that this remains the case for current pensioners, those nearing State Pension age and today’s young workers including those who are only starting their careers.

I hope this clarifies the matter for the Deputy. 

Claire Kerrane (Roscommon-Galway, Sinn Fein)
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1005. To ask the Minister for Employment Affairs and Social Protection if consideration is being given to including foster carers within a State pension solution for carers given that she is due to report on updates to the State pension in the coming weeks; and if she will make a statement on the matter. [19765/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Subject to the standard qualifying conditions for State Pension (Contributory) also being satisfied, the State Pension system already provides significant recognition to those whose work history includes an extended period of time outside the paid workplace, often to raise families or in a full-time caring role.

This is provided through the award of Credits, the application of the Homemaker’s Scheme (under the Yearly Average method for payment calculation) and/or the application of HomeCaring Periods (under the interim Total Contributions Approach also known as the Aggregated Contribution Method). 

Details of these are: 

- Credits– PRSI Credits are awarded to recipients of Carer’s Allowance (and Carer’s Benefit) where they have an underlying entitlement to credits. Credits are also awarded to workers who take unpaid Carer’s Leave from work.

- The Homemaker’s Scheme- The scheme, which was introduced with effect from 1994, is designed to help homemakers and carers qualify for State Pension(Contributory).  The Scheme, which allows periods caring for children or people with a caring need to be disregarded (from 1994), can have the effect of increasing a person's Yearly Average.

- HomeCaring Periods– HomeCaring Periods may be awarded for each week not already covered by a paid or credited social insurance contribution (regardless of when they occurred) to a maximum of 20 years.  HomeCaring Periods can only be used under the Interim Total Contributions Approach of pension calculation. 

Since April 2019, all new State (Contributory) Pension applications are assessed under all possible rate calculation methods, including the Yearly Average and the Interim Total Contributions Approach, with the most beneficial rate paid to the pensioner.  The elements which make up each method are set out in legislation. 

Foster parents are entitled to the benefits of the Homemakers Scheme or HomeCaring Periods, on the same basis as other homemakers, and will qualify automatically if the carer is in receipt of Child Benefit.  If the foster parent is not in receipt of Child Benefit s/he can still qualify for the Homemaker’s scheme or HomeCaring Periods provided the caring periods are confirmed by Tusla.

It should be noted that if a person does not satisfy the conditionality to qualify for the State Pension (Contributory), s/he may qualify for the means-tested State Pension (Non-Contributory), the maximum rate of which is over 95% that of the maximum rate of the State Pension (Contributory).  Alternatively, if his/her spouse is a State pensioner and has significant household means, his/her most beneficial payment may be an Increase for a Qualified Adult, based on his/her personal means, and amounting to up to 90% of a full contributory pension. 

The Pensions Commission’s Report was published on 7th October 2021.  It established that the current State Pension system is not sustainable into the future and that changes are needed.  The report set out a wide-range of recommendations in relation to the State Pension system and Social Insurance Fund, including enhanced pension provision for long-term carers (who are caring for over 20 years).

In the interests both of older people and future generations of older people, the Government intends to consider the comprehensive and far reaching recommendations in the Pensions Commission’s Report very carefully and holistically.  My officials are examining each of the recommendations and consulting across Government through the Cabinet Committee system.  The Joint Oireachtas Committee on Social Protection and the Commission on Taxation and Welfare have submitted their views on the recommendations.  These various views will be considered carefully as part of the Government's deliberations.

It is really important that we complete that work before reaching conclusions on any one recommendation, such as the recommendations related to long-term carers.  In this regard, I intend bringing a recommended response and implementation plan to Government in the coming weeks.  

The State Pension is the bedrock of the pension system in Ireland.  It is extremely effective at ensuring that our pensioners do not experience poverty.  This Government is committed to ensuring that this remains the case for current pensioners, those nearing State Pension age and today’s young workers including those who are only starting their careers.

I hope this clarifies the matter for the Deputy.