I understand that the Deputy is referring to the pension arrangements which I introduced in last year's Social Welfare Act for those self-employed people who were 56 years of age or over in April 1988, when social insurance was extended to the self-employed, and who failed to qualify for a pension as they did not satisfy the standard requirement of having entered insurance at least ten years before pension age.
From April 1999 a special old age contributory pension is available to those self employed people who were aged 56 or over in April 1988 and who have at least five years contributions paid since then. Payment is at a flat rate of 50% of the standard maximum rate with equivalent increases for adult and child dependants, where applicable.
The rationale behind this five-year paid contribution condition is to ensure that entitlement to a pension is limited to those who have made some reasonable level of contributions to the social insurance fund during the course of their careers.
I consider these arrangements to be a fair and sympathetic response to the predicament of some people who, through no fault of their own, could not qualify for a pension in accordance with the standard qualifying conditions.
To date 3,414 claims for the special reduced rate old age contributory pension for the self-employed have been awarded, at an annual cost of almost £11 million.