Dáil Éireann Debate, Thursday - 18 October 2018
318. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection if she has examined the position of full-time carers who due to their full-time duties as a carer may not qualify for a State pension; and if she will make a statement on the matter. [42786/18]
View answerThrough the commitments contained in both the Programme for Government and in the National Carers’ Strategy, the Government recognises the crucial role that family carers play in Irish society and is fully committed to their support through a range of supports and services. The main income supports provided by my Department include Carer's Benefit, Carer's Allowance, Domiciliary Care Allowance, and the Carer's Support Grant. Spending on these payments in 2018 is expected to amount to almost €1.2 billion.
Credited contributions, normally known as credits, are awarded to recipients of Carer’s Benefit and of Carer’s Allowance where they have an underlying entitlement to credits. Recipients of these payments qualify for credits where they have at least one paid contribution in the previous two years or have had credited contributions in that period. Credits are also awarded to workers who take unpaid Carer’s Leave from work.
Credits protect social insurance entitlements by bridging gaps in an employee’s social insurance record, where they are not in a position to pay PRSI, such as during periods spent caring. In combination with paid PRSI contributions, credits assist employees in qualifying for short-term schemes and enhance the level of benefit for long-term schemes.
In addition, all carers, including those who do not qualify for a payment or for credits, may qualify for the homemaker scheme. The homemaker’s scheme, which was introduced in and from 1994, is designed to help homemakers and carers qualify for State pension (contributory). Years spent caring on a full-time basis are disregarded when calculating the State pension (contributory) rate of payment when the rate of pension is calculating using the Yearly Average method. In January this year the Government announced that those affected by the rate band changes made in September 2012 would see their entitlement calculated using a Total Contributions Approach. This would involve the award of credits for periods of up to 20 years spent as a HomeCarer. If the pensioners payment was to be increased, they would be backdated to March 2018 and it is expected to make first payments in early 2019.
Through the award of credits, the homemaker’s scheme and the new HomeCarers credit, the social insurance system already gives significant recognition of carers in terms of the State Pension.
Any further changes made to social insurance schemes would have cost implications which would need to be considered in a budgetary context.
For those with insufficient contributions to meet the requirements for a State pension (contributory), they may qualify for a means tested State pension (non-contributory), the maximum personal rate for which is €232 (over 95% of the maximum rate of the contributory pension). This rate of payment does not include rent allowance, household benefits or fuel allowance. Alternatively, if their spouse is a State pensioner and they have significant household means, their most beneficial payment may be an Increase for a Qualified Adult, based on their personal means, and amounting up to 90% of a full contributory pension.
I can assure the Deputy that I am very aware of the key role carers play in society and I will continue to keep the range of supports available to carers under review. However, any improvements or additions to these supports can only be considered in a budgetary context and in the light of available financial resources.
I hope this clarifies the matter for the Deputy.
