The Prescribed Relatives Allowance preceded the introduction of the Carer's Allowance scheme. It was payable in respect of a relative (specified in legislation) of a social welfare pensioner, who was living with and providing full-time care and attention to the pensioner. Initially, the allowance was paid by way of an increase in the pension payment. In 1989 provision was made for direct payment of the allowance to the relative providing the care. Following the introduction of the Carer's Allowance in 1990, relatives of pensioners in receipt of prescribed relatives allowance, were invited to apply for Carer's allowance. Where they applied, and it was to their financial advantage, arrangements were made to make payment of Carer's allowance direct to the relative providing full-time care and attention to the pensioner.
The Total Contributions Approach (TCA) to qualifying for the State Pension (contributory) announced on 23 January where the Government agreed to a proposal that will allow pensioners affected by the 2012 changes in rate bands to have their pension entitlement calculated by a new "Total Contributions Approach" (TCA) which will include up to 20 years of a new HomeCaring credit. Unlike the current Homemakers scheme, this credit will apply to periods both before and after 1994. This approach is expected to significantly benefit many people, particularly women, whose work history includes an extended period of time outside the paid workplace, while raising families or in a caring role. It will make it easier for such pensioners to qualify for a higher rate of the State Pension (contributory). The TCA will ensure that the totality of a person’s social insurance contributions - as opposed to the timing of them - determines a final pension outcome, and it also acknowledges, for the first time, the contribution made by home-carers in the period before 1994.
While details of the TCA model have not been finalised ahead of consultation and legislation later this year, it is expected that former recipients of the Prescribed Relatives Allowance may be considered within the context of HomeCaring credit awards.
The new TCA for pensioners assessed under the 2012 rate band changes, comes into effect from 30 March 2018. Pensioners do not need to contact the Department at this juncture. Instead, the Department will invite over 40,000 pensioners, who were assessed under the current rate bands in place since 2012, to have their pensions recalculated under TCA to determine if they qualify for a higher rate of entitlement. However, as it will take time to design and set up administrative processes, and the necessary IT systems, the Department expects to send out these invitations from Quarter 4 of 2018 and to begin payments, where applicable, including arrears for any period from 30 March 2018, from Quarter 1 of 2019.
I hope this clarifies the position for the Deputy.
