In 1994 special arrangements were introduced designed to ensure that homemakers do not suffer a loss of pension entitlement because of time spent full-time at home looking after a child, or caring full-time for an elderly or incapacitated person.
From 6 April 1994, time spent working in the home rearing young children up to six years of age or caring for incapacitated people is disregarded for the purpose of calculating the yearly average condition in determining entitlement to contributory old age pension. A maximum of 20 years may be disregarded.
The Social Welfare Act, 1996, provided for an increase in the age of children being cared for under this scheme from six to 12 years. This improvement is effective from the contribution year 1995-96 onwards. On foot of this, it is estimated that an average of up to 250,000 people overall could qualify for the disregards under this scheme.