My Department acknowledges the important contribution that carers provide and is fully committed to supporting them in that role. There are a number of payments and pensions paid by my Department to people over state pension age. One of these is the State Pension Contributory (SPC).
The Homemakers Scheme was introduced in April 1994 for use in the yearly average calculation of SPC. This allows an applicant to apply under the Homemaker's Scheme for those years out of the workforce since April 1994 spent caring for children under age 12 or other dependent relatives to be disregarded in the yearly average calculation.
With the introduction in 2018 of the Total Contributions Approach to calculating SPC, Home Caring Periods were introduced. Up to 20 years of Home Caring Periods can be considered and this includes periods prior to 1994. Both the Homemakers disregard (for use in the yearly average method) and Home Caring periods (for use in the total contributions method ) may only be used to enhance or increase the rate of entitlement where claimants meet the other qualifying conditions, including the number of full-rate contributions.
In September 2022, a series of landmark reforms to the state pension system were announced in response to recommendations from the Pensions Commission. One of the key measures under these reforms, which came into operation from the 1st January 2024, was the introduction of a flexible pension system. This allows those reaching state pension age to defer access to their SPC to any age up to the age of 70 and receive an actuarially adjusted higher rate of payment. This change allows those with less than the required 520 contributions to build up additional contributions to establish entitlement.
Also from January 2024, provisions for people who have been caring for incapacitated dependents for over 20 years (1040 weeks) were introduced. Those who have been caring for incapacitated people for over 20 years can apply for the Long-Term Carers Contributions (LTCC) scheme. If the criteria are met, the equivalent of paid contributions may be awarded giving an entitlement to SPC or to a higher rate of payment where the claimant has other reckonable contributions.
As such, those who leave insurable employment to provide long term care can avail of these schemes to qualify for SPC. For those who were caring for less than 20 years, there is a reasonable expectation that they will have paid a minimum number of social insurance contributions over the rest of their working lives in order to qualify for SPC.
Where a person reaches State Pension age and does not satisfy the conditions to qualify for SPC or qualifies for less than the maximum rate, they may instead qualify for one of the following:
• The means-tested State Pension Non-contributory which is a means-tested payment (based on their share of household means) with a maximum payment of 95% of the SPC; or
• An increase for a qualified adult (based on their own means), amounting up to 90% of a full rate SPC pension where their spouse is receiving a contributory pension;
I am satisfied that the relevant information is available on both the Government and Citizens Information websites. The information is regularly reviewed and updated, as necessary.
I trust this clarifies the position for the Deputy.
