Dáil Éireann Debate, Tuesday - 30 January 2018
612. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of the new total contributions approach and home caring credit; and if she will make a statement on the matter. [4455/18]
Amharc ar fhreagraOn 23 January, the Government agreed to a proposal that will allow pensioners affected by the 2012 changes in rate bands to have their pension entitlement calculated by a new “Total Contributions Approach” (TCA) which will include up to 20 years of a new HomeCaring credit. This approach is expected to significantly benefit many people, particularly women, whose work history includes an extended period of time outside the paid workplace, while raising families or in a caring role. It will make it easier for pensioners assessed under the yearly average model, to qualify for a higher rate of the State Pension (contributory). The TCA will ensure that the totality of a person’s social insurance contributions - as opposed to the timing of them - determines a final pension outcome.
The new TCA with substantial HomeCaring credits will be available to all people who reached pension age after 1st September 2012, when the revised rate bands took effect.
The cost of introducing this measure is estimated to be in the region of €40 million per annum, which does not include inflows from other schemes. This cost is based on estimated levels of take up of HomeCaring Credits among women and men, which will only be clear when claims have been made and processed. Inflows from other schemes cannot be estimated, e.g. those people on a State pension (non-contributory) who may now have a higher entitlement under the State pension (contributory).
I hope this clarifies the matter for the Deputy.
