Bríd Smith (Dublin South Central, People Before Profit Alliance)
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446. To ask the Minister for Employment Affairs and Social Protection the number of women currently receiving State pension (contributory) but whose years out of the workforce as a homemaker prior to 1994 are not disregarded when working out the yearly average contributions for the pension. [8088/23]

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. Subject to the standard qualifying conditions for State Pension (Contributory) also being satisfied, the State pension system 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 and/or the application of the Homemaker’s Scheme (under the Yearly Average method for payment calculation) and/or the application of HomeCaring Periods (under the Total Contributions Approach).

Details of these are –

- 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 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 may be awarded for each week not already covered by a paid or credited social insurance contribution (regardless of when they occurred) up to a maximum of 20 years. This applies to periods both before and after 1994.

HomeCaring Periods are used under the 'Total Contributions Approach' of pension calculation and not the 'yearly average' pensions calculation. Therefore, the information requested by the Deputy is not available. If the Deputy has a particular case, it can be brought to the attention of my department who will provide further clarification.

It should be noted that, if a person does not qualify for a State Pension (Contributory) or qualifies for a reduced rate, he or she may qualify for the means-tested State Pension (Non-Contributory), the maximum rate of which is 95% of the rate of the State Pension (Contributory). Alternatively, an Increase for a Qualified Adult (IQA) is paid, generally, where a pensioner has an adult dependent who does not have enough contributions to claim a maximum rate State Pension (Contributory) in his or her own right. The payment rate for the IQA is up to 90% of the full rate State Pension (contributory). The most advantageous payment for a pensioner will depend upon their individual circumstances.

Despite the existing measures within the State Pension system that recognise periods spent caring, long-term carers of incapacitated dependents may still face barriers in accessing the State Pension.

I announced a series of landmark reforms to the State Pension system in September 2022. One of the reforms agreed by Government is enhanced State Pension provision for long-term carers of incapacitated dependents (who have been caring in excess of 20 years), as recommended by the Pensions Commission, and to be introduced from January 2024. My officials are currently working to implement the reforms, including the drafting of legislation and development of administrative and IT systems as necessary.

I hope this clarifies the matter for the Deputy.

Bríd Smith (Dublin South Central, People Before Profit Alliance)
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447. To ask the Minister for Employment Affairs and Social Protection the estimated number of affected persons who, due to their years as a homemaker prior to 1994, have not qualified for a State pension (contributory). [8089/23]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Under current eligibility conditions, an individual must have 520 full-rate paid contributions in order to qualify for standard State pension (contributory). 520 full-rate contributions equate to 10 years of full-rate insurable employment.

In January 2018, the Government agreed a new “Total Contributions Approach” (TCA) for State pension (contributory) which can include up to 20 years of Home Caring periods. Unlike the Homemakers scheme, this applies to periods both before and after 1994. This can benefit many people, particularly women, whose work history includes an extended period of time outside the paid workplace, while raising families or in a caring role. The TCA ensures that the totality of a person’s social insurance contributions - as opposed to the timing of them - determines a final pension outcome, and it also acknowledges the contribution made by home carers in the period before 1994.

My department does not currently hold a breakdown of all applications awarded or disallowed by contribution/credit type. Therefore, the information requested by the Deputy in not available. However, if the Deputy has a particular case, she can bring it to the attention of my department who will provide further clarification.

Where a person aged 66 or over does not satisfy the conditions to qualify for a state pension (contributory), or qualifies for less than the maximum rate, they may instead qualify for one the following -

- The State Pension (non-contributory) which is a means-tested payment. The maximum rate is equivalent to 95% of the full rate State Pension (contributory); or

- An increase for a qualified adult, equivalent to 90% of the full rate State Pension (contributory) where their spouse is in receipt of this pension; or

- Where their spouse/civil partner is deceased, a widow's/widower's/civil partner's contributory pension, which can be based on either their spouses or their own social insurance record. The qualifying conditions for this require fewer contributions paid (260) than the State pension (contributory), and the maximum personal rate for those aged 66 is the same rate as the state pension (contributory), with allowances (notably the Living Alone Allowance) payable where applicable.

I hope this clarifies the position for the Deputy.

Bríd Smith (Dublin South Central, People Before Profit Alliance)
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448. To ask the Minister for Employment Affairs and Social Protection her proposals to remedy the discrimination suffered by homemakers whose time out of the workforce prior to 1994 is not taken into account, and who have not qualified for a State pension (contributory); and if she will make a statement on the matter. [8090/23]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The current State Pension (Contributory) system gives significant recognition to those whose work history includes an extended period outside the paid workforce, often to raise families or to provide another full-time caring role.

Applicants for the State Pension (Contributory) have their entitlement assessed under two separate criteria, receiving a payment based on which method is most beneficial to the person. The Yearly Average (YA) method has been in place since the introduction of the contributory pension in 1961. The YA method uses all paid and credited contributions divided by time spent in the social insurance system to give an average of Social Insurance contributions per year with payments made on a banded basis.

Under the Yearly Average method, applicants can apply under the Homemaker's Scheme for those years since 1994 spent caring for children under 12 or other dependent relatives to be disregarded in the calculation. Up to 20 years disregard can be applied. This means the pension average does not disadvantage an applicant for the time spent caring.

In January 2018, an interim Total Contributions Approach was introduced which removed the time spent in the Social Insurance system as a factor and simply added paid and credited contributions together. Homecaring periods can be claimed for providing full time care to children under 12 or people aged over 12 who require an increased level of full-time care. Up to 20 years of Homecaring Periods can be claimed. This reform fundamentally changed the entitlement of many who spent time out of the workforce caring for others. It, for the first time, acknowledged home caring periods prior to 1994. The Interim Total Contributions Approach arrangement results in a fairer and a more transparent system, as the person’s lifetime contribution is reflected in the State Pension (Contributory) payment received.

Where a person reaches State Pension age and does not satisfy the conditions to qualify for a SPC or qualifies for less than the maximum rate, he/she may qualify for the means-tested State Pension (Non-Contributory), the maximum rate of which is over 95% of the rate of the State Pension (Contributory). Alternatively, an Increase for a Qualified Adult (IQA) is paid, generally, where a pensioner has an adult dependent who does not have enough contributions to claim a maximum rate State Pension (Contributory) in his or her own right. The payment rate for the IQA is up to 90% of a full contributory pension. The most advantageous payment for a pensioner will depend upon their individual circumstances.

Last September, I announced a series of landmark reforms to the State Pension system. The measures are in response to the Pensions Commission’s recommendations and represent the biggest ever structural reform of the Irish State Pension system. One of the reforms agreed by Government is a phased 10-year full transition to the Total Contributions Approach and the abolition of the Yearly Average approach to commence from January 2024.

I hope this clarifies the matter for the Deputy.