Dáil Éireann díospóireacht -
Tuesday, 27 Feb 2001

Vol. 531 No. 3

Written Answers. - Social Welfare Benefits.

Seán Ryan

Ceist:

78 Mr. S. Ryan asked the Minister for Social, Community and Family Affairs his plans to ensure that women over the age of 66 who do not qualify for social welfare payments based on their own contributions will receive payments; the time scale for implementing such a provision; and if he will make a statement on the matter. [5716/01]

Minister for Social, Community and Family Affairs (Mr. D. Ahern):

The Government is committed to extending pension cover to as many categories as possible. In recent years more flexibility has been introduced into the qualifying conditions for the old age contributory pension scheme.

Measures already introduced include the reduction in 1997 in the average number of PRSI contributions required for pension purposes to ten; the provision in 1999 of a special half rate pension for self employed contributors who were already over 56 years of age in 1988 when compulsory social insurance was introduced for this group; and the payment of another special half rate pension, introduced in 2000, based on pre-53 insurance contributions. These measures are making it easier for people, particularly women, with reduced or broken insurance records to receive a contributory pension.

At present it is estimated that about 90% of women over 65 years of age are receiving a social welfare payment. Of these 87 per cent have a payment in their own right with about 62 per cent of those who have a payment receiving one based on their PRSI record. While recognising that the social insurance system cannot cover all gaps in pension coverage, nevertheless, as I indicated in my speech on the budget more needs to be done in this area.

In particular, the existing homemaker's scheme, which is intended to protect the pension entitlements of those who take time out of the paid workforce to care for children or sick relatives, is being reviewed. This and other issues, including the cost and administrative implications, is being considered in the context of the second phase of the review of the qualifying conditions for old age contributory and retirement pensions which has just commenced. I expect to receive the working group's report later this year.

The Government also decided to increase the rate of the qualified adult allowance for those over 66 years of age to the full old age noncontributory pension rate. A major step towards this objective was taken in budget 2001 by providing an increase of £15 per week in the full rate qualified adult allowance.

Following consideration of the report of the PPF working group which is currently examining the issues of administrative individualisation, arrangements will be put in place so that part of the pension can be paid directly to the qualified adult as a homemaker's pension.