Dáil Éireann debate -
Thursday, 9 Nov 2000

Vol. 525 No. 4

Written Answers. - Pension Provisions.

Michael Noonan

Question:

37 Mr. Noonan asked the Minister for Social, Community and Family Affairs if he will outline Government policy and conditions in place in relation to the homemakers scheme; if he will extend this scheme; the number currently benefiting; the estimated number of those who have spent time caring who are ineligible; and if he will make a statement on the matter. [25044/00]

Minister for Social, Community and Family Affairs (Mr. D. Ahern):

The Government is committed to ensuring the broadest possible contributory pension cover to as many categories as possible, and recognises that people who leave the workforce to undertake family responsibilities in the home may lose out in maintaining their social insurance record.

For this reason, special arrangements are in place to assist those who work in the home to qualify for an old age contributory pension. From 6 April 1994, periods of time spent out of the workforce, including self employment, caring either for children aged up to six years or incapacitated people are ignored or disregarded when calculating a person's pension entitlements. The Social Welfare Act, 1996, extended the homemaker provisions by increasing the age of children being cared for from six to 12 years.

For any year to be disregarded a homemaker must be out of the workforce for a complete year, 52 weeks, from 6 April 1994. The maximum period which can be disregarded is 20 years.

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.

A total of 2,756 people are formally registered under the homemakers scheme, comprising mainly people caring for elderly-sick relatives who do not qualify for carer's allowance. Those caring for children would be certified through child benefit records and those who have applied for carer's allowance do not need to formally register for the scheme.

Statistics regarding those currently ineligible for the homemakers scheme are not available.

I recognise that issues remain to be addressed in the area of homemakers and, as I have previously indicated, I have ordered a review of the arrangements which are already in place. Accordingly, an examination of the homemakers scheme is being undertaken as part of the ongoing review of eligibility conditions for contributory old age pensions and I will consider the issues further in a budgetary context.