Written answers

Tuesday, 27 June 2023

Department of Employment Affairs and Social Protection

Social Welfare Benefits

Photo of Michael McNamaraMichael McNamara (Clare, Independent)
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451. To ask the Minister for Employment Affairs and Social Protection if plans are in place to reform the carer’s allowance criteria for persons who were self-employed for some time prior to taking time out to care full-time for family members (details supplied); and if she will make a statement on the matter. [31341/23]

Photo of Heather HumphreysHeather 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 of time 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.

Class S contributors are not eligible for PRSI credits. There are a number of reasons why this is, for example, employees are only insured on a week by week basis, provided they earn at least €38 in any particular insurable week. For weeks not worked, no paid contributions are recorded. Hence the need for the current employment credits scheme to fill such daily gaps which occur because of unemployment, illness, etc. or weekly gaps where they are in receipt of specified payments. In contrast, Class S workers are insured on an annual basis. Class S contributors make a single annual payment which awards them the full 52 paid contributions for that year, regardless of when they worked to generate that income i.e. in one week or over the full year.

However, time spent outside the workforce caring for others can be recognised through HomeCaring Periods for the purpose of calculating rate of payment for the State Pension (Contributory). Up to 20 years HomeCaring Periods may be counted in the calculation. HomeCaring Periods are available to all, regardless of PRSI class.

I hope this clarifies the matter for the Deputy.

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