The social welfare pension rights of those who take time out of the workforce for caring duties are protected by the homemakers scheme which was introduced from 1994. The scheme allows up to 20 years spent caring for children or incapacitated adults to be disregarded when a person's social insurance record is being averaged for pension purposes. However, the scheme will not of itself qualify a person for a pension. The standard qualifying conditions, which require a person to enter insurance ten years before pension age, pay a minimum of 260 contributions at the correct rate and achieve a yearly average of at least ten contributions on their record from the time they enter insurance until they reach pension age, must also be satisfied.
As the Deputy is aware, the social welfare system comprises two types of pension; contributory pensions based on social insurance contributions and non-contributory pensions, payment of which are subject to a means test. Within that basic structure, the Government is anxious to ensure that as many people as possible can qualify for pensions in their own right.
A number of measures have been introduced over the years which make it easier for people to qualify for contributory pensions. These include the reduction in the yearly average number of contributions required for pension purposes from 20 to ten and the introduction of special half rate pensions based on pre-53 insurance contributions. Pro rata pensions are also available to allow people with mixed rate insurance records to receive a payment. This set of measures is of particular benefit to women who may have less than complete social insurance records due to working in the home.
There are, of course, those who will not benefit from the homemakers scheme and who cannot qualify for a pension in their own right. In this regard, the Government is committed to increasing the payment for qualified adults aged 66 or over to the same level as the personal rate of the old age non-contributory pension and to facilitate the direct payment of the allowance to spouses and partners.
Budget 2006 increased the qualified adult rates for age 66 or over by €10.80 per week for contributory pensioners and by €10.60 per week for non-contributory pensioners. Also, since 2002, new pension claimants can now opt to have the qualified adult allowance paid directly to their spouse or partner. The administrative and legislative implications of enhancing these provisions are under active consideration by my Department and I intend to progress the matter in the coming year.
As regards the non-contributory pension, in budget 2006 I made changes to the income disregards allowed under the means test. The basic income disregard was increased by €12.40 per week to €20 and I also introduced an earnings disregard of €100 per week. These allowances are doubled in the case of couples and will allow more people to qualify for social welfare pensions.
I will continue to look for ways, within the current social welfare structure, in which the needs of older people who are at present outside the social welfare pensions system may be addressed.