Vol. 509 No. 1
260 Mr. Ring asked the Minister for Social, Community and Family Affairs if homemaker credits will be awarded to those people who spent their lives working in the home, rearing a family and unaware they should have been signing on the live register which adversely affected their pension credits. [19500/99]
The Government recognises that women who leave the workforce to undertake family responsibilities in the home face difficulties in maintaining their social insurance record as they could not sign on the live register for credits, due to the availability for work condition. The Government has, therefore, given a commitment under An Action Programme for the Millennium "to provide the mechanism to allow women, who take time out for family reasons, to continue contributions for pension purposes".
Certain measures have already been introduced to address this problem. Special arrangements are in place to help people who work in the home to qualify for an old age contributory pension. From 6 April 1994, years spent out of the workforce caring either for children up to the age of six, increased to age 12 from 6 April 1995, or incapacitated people may be disregarded in calculating the person's yearly average number of contributions for old age contributory pension purposes. A maximum of 20 years may be disregarded in this way.
Provision is also made for the award of credited contributions in the year in which a person commences or ceases to be a homemaker. In addition, earnings of up to £30 per week where a person is engaged in part-time employment outside the home are also permitted. It is estimated that up to 250,000 people could ultimately benefit under the above arrangements.
I would also point out that in November 1997 I introduced new pro rata pensions so that people who pay social insurance for a reasonable period of time will qualify for an old age contributory pension. A yearly average of between 15 and 19 contributions gives a pension of 75 per cent of the maximum rate, while an average of between ten and 14 gives a pension of 50 per cent. To qualify a person also needs to have a minimum of 260 paid contributions. This measure is of benefit to many women who have gaps in their PRSI records due to working in the home looking after a child, or caring full-time for an elderly or incapacitated person.
261 Mr. N. Ahern asked the Minister for Social, Community and Family Affairs the situation of a person (details supplied) in Dublin 11 whose pension reduces each year; if the pension calculation is correct; when the report into pre-1953 contributions will be issued; and if he will make early changes for individuals like this who had reduced pensions and years of pre-1953 stamps. [19501/99]
The person concerned is currently in receipt of retirement pension at the weekly rate of £86.90. This is the correct rate based on the person's yearly average of 42 contributions paid and/or credited from 1953 until he reached retirement age in 1989. To qualify for retirement pension at the maximum rate, £89.00 at present, a yearly average of 48 contributions is required.
The level of increases provided to recipients of reduced rate contributory pensions is determined by the percentage relationship between the reduced rate and the appropriate maximum rate of payment. This is the system which has operated since the introduction of the old age contributory pension scheme and it applies equally where the general increases are provided on a percentage basis or, as has been the case in recent years, on a monetary basis.
262 Mr. N. Ahern asked the Minister for Social, Community and Family Affairs it the situation of carer's allowance will be examined; if the case of a person (details supplied) in Dublin 11 will be examined; and if the rules will be changed in cases like this to allow a 25 per cent or 50 per cent carer's allowance in addition to social welfare payments. [19502/99]
The carer's allowance is a means tested payment for carers on low income who look after people in need of full-time care and attention.
The person concerned is in receipt of widow's contributory pension since 7 February 1992 and the current weekly personal rate is £87.10. She is also in receipt of a fuel allowance of £8.00 per week during the fuel season. In addition, she is in receipt of free travel, free electricity allowance, free telephone rental allowance and free television licence.
The maximum rate of payment of carer's allowance payable to persons over 66 years of age is £81.50 per week. Therefore, it is financially more beneficial for the person concerned to remain in receipt of widow's contributory pension.
Where a person in receipt of a widow's pension applies for a carer's allowance, she will receive the higher payment – there is no loss of income. In the majority of cases persons in receipt of a widow's contributory pension would be better off remaining in receipt of this payment, and the Department will ensure that this is the case.
The review of the carer's allowance examined the issue of paying the carer's allowance in conjunction with another social welfare payment. The practice of paying only one allowance is a feature, with very few exceptions, of all social welfare payments and is designed to ensure that limited resources are not used to make two income support payments to any one individual. The review concluded that this practice should continue.
