Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The State Pension (Contributory) is funded from the Social Insurance Fund through the contributions paid by workers. The rate of payment reflects the number of social insurance contributions paid over a working life. Eligibility for the State Pension (Contributory) (SPC) is based on a number of criteria:

• Being aged 66 or over.
• Having entered the Social Insurance system 10 years before you intend to drawdown your SPC.
• Having a minimum of 520 paid social insurance contributions (i.e., 10 years reckonable PRSI contributions).

This Government acknowledges the important role that family carers play and is fully committed to supporting them in that role. Accordingly, carers are not excluded from access to the SPC. Once a person has met the minimum requirement of 520 paid contributions, the State Pension system gives significant recognition to those whose work history includes extended periods outside of paid employment, often to raise families or in a full-time caring role including:

• PRSI credits (which include Credits for Carers Benefit and Carers Allowance).
• Homemaking Disregards and HomeCaring Periods to 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 dependants faced barriers in accessing the State Pension (Contributory).

Based on a Programme for Government commitment, the Pensions Commission was asked to consider how people who have provided long-term care for incapacitated dependants can be accommodated within the State Pension system. The Commission engaged in a public consultation process and had the benefit of presentations from Family Carer’s Ireland and the National Women’s Council in forming its recommendations on the proposals and the period of care. The Commission recommended that long-term carers should be given access to SPC and defined long-term caring as caring for more than 20 years. Setting the criteria of more than 20 years is in recognition of the existing access to SPC for carers who may have up to 20 years of caring periods.

I was very pleased to implement this important recommendation and, since January 2024, long-term carer's contributions can be awarded to a person who has cared for an incapacitated person for a period of 20 years or more. These contributions will be treated the same as paid contributions for State Pension (Contributory) entitlement only and can be used to fill any gaps in a person's contribution record, including satisfying the minimum 520 contributions required for eligibility.

Where a person has less than 20 years caring, they may be entitled to avail of up to 20 years HomeCaring periods or the Homemakers scheme or rely on PRSI credits subject to existing qualification conditions of having 520 paid contributions. All caring periods that are registered with the Department will be recorded on a person's contribution record.

Where a person reaches State Pension age and 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 of the following:

1.The State Pension (Non-Contributory) which is a means-tested payment (based on their share of household means) with a maximum payment of 95% of the State Pension (Contributory); or

2.An increase for a qualified adult (based on their own means), amounting up to 90% of a full rate State Pension (Contributory) where their spouse has a contributory pension; or

3.Where their spouse/civil partner is deceased, a widow’s/widower’s/civil partner’s contributory pension, which they may claim either based on their spouse’s or their own social insurance record. The qualifying conditions for this require fewer contributions paid (260) than the State Pension (Contributory) and the current maximum personal rate for those aged 66 or over is €277.30, i.e., the same as the maximum rate of the State Pension (Contributory), with allowances (notably the Living Alone Allowance) payable where applicable.

In circumstances where carers have access to the SPC under the measures set out above, it is not possible to provide an estimated cost in the terms set out by the Deputy.

I trust this clarifies the matter for the Deputy.