Within the social welfare system there are a number of arrangements to assist women working in the home. Child benefit is normally payable to the mother, recognising the important value of the work done by the primary carer, who is usually the mother. The £1 billion three year child benefit investment package commenced in this year's budget will strengthen the position of those who choose to work in the home and care for their children in that way, while simultaneously easing the burden for those who opt to go out to work and use child care arrangements.
With effect from next June, a full three months earlier than usual, child benefit rates for first and second children will increase by £25 to £67.50 per month and by £30 to £86 per month for third and subsequent children. That constitutes a full year investment of £330 million and marks the first step in a three year programme of increases which will see Government investment in the child benefit scheme rise by an additional £1 billion by 2003. The dedication of substantial resources to child benefit in Budget 2001 reflects the serious commitment this Government has made to supporting those who are responsible for raising our children.
In relation to pensions I am also strongly committed to improving the position of people who take time out of the paid workforce to care for children or sick relatives. Measures already introduced, including the reduction in the average number of PRSI contributions required for pension purposes to ten and the extra recognition afforded to pre-53 contributions, are making it easier for people with reduced or broken insurance records to receive a pension.
While recognising that the social insurance system cannot cover all gaps in pension coverage, nevertheless, as I indicated in my speech on the budget more needs to be done in this area, for example, in relation to the existing system of homemaker disregards. This and other issues, including the cost and administrative implications, will be considered in the context of the second phase of the review of the qualifying conditions for old age contributory and retirement pensions which will get under way shortly. Another improvement relates to the decision to increase the rate of the qualified adult allowance for those over 66 years of age to the full old age pension rate. A major step towards this objective was taken in budget 2001 by providing an increase of £15 per week in the full rate QAA. Following on the report of the PPF working group examining the issues of administrative individualisation, arrangements will be put in place so that part of the pension can be paid directly to the qualified adult.