From 6 April 1994, time spent working full-time in the home rearing young children up to six years of age or caring for an incapacitated person may be 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 for this purpose. A person is also allowed to engage in part-time work outside the home and earn up to £30 a week and still benefit from this scheme.
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. A provision allowing for the award of credited contributions in the year in which a person commences or ceases to be a homemaker is also included in the legislation governing the scheme. These improvements will make it easier for married women minding their children and other homemakers to qualify for the award of an old age contributory pension.
Improvements to the scheme have also been introduced with the aim of making it easier for homemakers to qualify for old age contributory pension. All carers may be eligible, not just those in receipt of a carer's allowance. A person receiving carer's allowance and-or child benefit may be awarded credits or a disregard for the period of caring. However, if a person is not in receipt of a carer's allowance or child benefit then she-he may still qualify for disregard for the "homemaking years". She-he may also receive homemaker's credits in the year she-he commenced and the year she-he ceased homemaking.
Any person who leaves the workforce on or after 6 April 1994 to care for a child or an incapacitated person may have these factors taken into account when the yearly average number of contributions for old age contributory pension is being calculated.