Pauline Tully (Cavan-Monaghan, Sinn Fein)
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234. To ask the Minister for Employment Affairs and Social Protection further to Parliamentary Question No. 352 of 6 December 2022, if those people already receiving a pension on a reduced rate due to extended caring responsibilities of over twenty years will have their pension reviewed and increased once the new enhanced State pension is implemented in 2024; and if she will make a statement on the matter. [9316/23]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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This Government acknowledges the important contribution that carers provide and is fully committed to supporting them in that role. Accordingly, the current State Pension (Contributory) system gives significant recognition to those whose work history includes an extended period outside the paid workplace, often to raise families or to provide another full-time caring role. PRSI Credits, Homemaking Disregards and HomeCaring Periods recognise caring periods of up to 20 years outside of paid employment in the calculation of a payment rate.

Despite these measures, some long-term carers of incapacitated dependents may still face barriers in accessing the State Pension. They may, for example, have difficulty establishing the minimum number of 10 years' paidcontributions.

As the Deputy is aware, I announced a series of landmark reforms to the State Pension system in September. 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 most important reforms agreed by Government is enhanced State Pension provision for people who have been caring for incapacitated dependents for over 20 years. It will do this by attributing the equivalent of paid contributions to long-term carers to cover gaps in their contribution record and by establishing a register of family carers for this purpose.

Department officials are currently working to implement the reforms, including the drafting of legislation and development of administrative and IT systems for implementation by January 2024. This will include identifying the eligibility criteria for those who will be attributed the equivalent of paid contributions for periods of long-term caring.

I hope this clarifies the matter for the Deputy.

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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On Budget Day last September, I announced the largest Social Protection package in the history of the state. A package that has seen the Government spend more than €2.1 billion on Social Protection measures, including over €880 million in order to provide for a €12 increase to the weekly rate of social welfare payments that came into effect from January 2023. This supports both pensioners and those of working age and includes a proportionate increase for qualified adults.

The rate increase is accompanied by a wide range of additional measures in 2023, including a significant increase in Working Family Payment thresholds which targets working families for critical support. This was on top of a range of 8 lump sum payments paid through Quarter 4 2022 to benefit a range of customers including pensioners, people with disabilities, carers, those living alone, and families with children. An Autumn and Christmas bonus were paid, the latter of which was, for the first time, paid to long term illness benefit recipients.

Taken together, for many household types, the combination effectively matches, or exceeds, inflation.

The ESRI post-Budget analysis shows that Budget 2023 general increases, when combined with one-off measures delivered in 2022 to support households with the cost of living, will be effective in protecting most households from rising prices.

The Department provides a range of schemes to those over State Pension Age - this includes State Pension (Contributory), State Pension (Non-Contributory) and Widows (Contributory) Pension along with a number of smaller schemes. It is estimated that the full year cost to increase these schemes by €10 is €372 million. This includes increases to personal rate and also includes a proportionate increase for the qualified adults.

This costing is based on the estimated number of recipients in 2023 and is subject to change in the context of emerging trends and associated revision of the estimated numbers of recipients.

I am satisfied that the total social welfare budget package for 2023 has been designed to protect the most vulnerable in society. But we are aware that the cost of living continues to present challenges for people throughout the state who are feeling the effects of persistently high prices.

That is why Government has announced additional support for people over the coming months, including:

- A €20 lump sum payment to be provided to people on long-term Social Protection payments, on the same basis as the Christmas bonus, and including Working Family Payment recipients.

- For people receiving Child Benefit, a €100 lump sum payment for each child to be paid in June.

- An additional payment of €100 to be paid for each child for whom Back to School Clothing and Footwear Allowance is paid.

Together, these supports will provide over €410 million in additional supports to households and families in need.

I trust this clarifies the matter for the Deputy.