Dáil Éireann díospóireacht -
Wednesday, 4 Jul 1990

Vol. 401 No. 1

Ceisteanna — Questions Oral Answers. - Social Welfare Benefits.

Mervyn Taylor

Ceist:

15 Mr. Taylor asked the Minister for Social Welfare if his attention has been drawn to the fact that women who give up paid employment outside the home to look after their children for a number of years are severely disadvantaged in claiming social welfare benefits upon their return to the paid workforce; his views on whether this is fair and equitable and in keeping with the constitutional guarantee to the family and to mothers in the home; the plans he has to change the regulations and remove this anomaly; and if he will make a statement on the matter.

Dr. Woods

To qualify for short-term benefits under the social insurance system two conditions must be fulfilled. The claimant must have a minimum of 39 contributions paid since entry into insurance and must have a minimum of 39 contributions paid or credited in the governing contribution year. Entitlement to pensions requires at least 156 paid contributions since entry into insurance plus a yearly average of paid or credited contributions. The option of maintaining entitlement to pensions is also available through the payment of voluntary contributions.

Women who leave insurable employment to work in the home remain eligible for short-term benefits for up to two years after ceasing to pay PRSI contributions. In addition, those who have at least three years contributions may apply to become voluntary contributors in order to preserve their insurance for pension purposes. The question of maintaining pension entitlements of people in this situation is one of the issues addressed by the National Pensions Board in their examination of pensions policy in the context of their final report.

The present conditions for entitlement to short-term benefits are designed to ensure that claimants have a recent attachment to the workforce. To award automatic credits to persons who have left the workforce for long periods and thereby qualify them for short-term payments would have major financial implications.

The extension over two years ago of dental, optical and aural benefits to the dependent spouses of qualified insured workers has been a major recognition of women working in the home. To date, some 154,000 dependent spouses have claimed treatment under the new scheme.

Mr. Ferris

Would the Minister agree that if he applied a scheme to women who are forced to leave work to look after their family similar to his Department's interpretation of educational credits which apply to young people who work, then go back to school and take up work again, this could overcome the anomaly the Minister has just mentioned when women return to work, and give equality to the family?

Dr. Woods

As I have said, I am examining this area and I have asked the National Pensions board to examine the longer term pensions aspects and, indeed, we are looking at this ourselves. I am concerned about this area and I will certainly be examining it.

Miss Flaherty

Has this area come up for discussion at EC level? I understand that there is a wide divergence of treatment and countries such as Germany and France, for example, give much more favourable treatment to women returning to the workforce. Could we anticipate some positive benefit from the convergence of EC social schemes as a result of the deliberation referred to earlier?

Dr. Woods

It is one of the aspects that will be considered in discussions between Ministers at EC level. It has not been considered as yet but it is one of the subjects I want the EC Ministers to discuss so that we can share objectives in that area. As Deputies know, some countries have very extensive schemes in place while others have none at all, and we are somewhere in between. Deputies can take it that we will be looking further into this area.