Vol. 502 No. 3
445 Mr. Ring asked the Minister for Social, Community and Family Affairs when the new pro rata contributory pension for self-employed people with less than ten years contributions will be introduced; and if he will give full details on the scheme. [7627/99]
As I announced in my budget speech, I am introducing a special old age contributory pension for a specific group of people – namely those self-employed who were aged 56 years or over in April 1988 when social insurance was extended to the self-employed, and who failed to qualify for a standard old age contributory pension as they could not satisfy the requirement of having entered insurance at least ten years before pension age.
Title to this special pension will be created from 6 April next with payment commencing from 15 October 1999. This will facilitate the necessary examination of claims and will ensure that refunds of contributions already made to some 3,000 pensioners in this group are recouped. Arrears of payment from April to October, where due, will be paid at that stage.
The new pension will be payable to those self-employed who were aged 56 or over when they entered social insurance on or after 6 April 1988 and who have at least five years reckonable contributions paid since then.
Under the new arrangements, payment will be made at a flat rate of 50 per cent, £41.50 per week, at present, and rising to £44.50 from next June of the standard personal rate with equivalent increases, where applicable, for adult and/or child dependents.
Entitlement will also give access to the free schemes.
It is estimated that some 11,000 people – 9,000 pensioners and 2,000 adult dependants – will benefit under the new arrangements at a full year cost in the order of £19 million.
I consider that the measures I am introducing represent a fair response to the situation in which this group of self-employed people found themselves through no fault of their own.
