Wednesday, 19 Jun 2024

State Pensions

Ceisteanna (71)

Richard Boyd Barrett

Ceist:

71. Deputy Richard Boyd Barrett asked the Minister for Social Protection if it is the case that currently, to receive the full State pension (contributory), a person requires 980 A1 stamps, equivalent to 20 years full-time work, but that as of 2034 (that is, those born after 1 January 1968), the requirement will increase to 2,100 A1 stamps, equivalent to 45 years full-time work; the rationale for such a change; if this change will affect all workers/pensioners, regardless of their income while working, or will affect people differently depending on their incomes while working; and if she will make a statement on the matter. [26392/24]

Amharc ar fhreagra

Freagraí scríofa

Minister for Social Protection

Once a person has met the minimum requirement of 520 paid contributions, the rate of payment at which a person is paid the State Pension (Contributory) is currently calculated using two methods; the Yearly Average (YA) method that has been in place since the introduction of the contributory pension in 1961 and the Total Contributions Approach (TCA) that was introduced in 2018. The most beneficial payment is then awarded to the person.

To qualify for a full rate pension under the YA method, a person must have an average of 48 contributions per year since they first entered insurable employment.

To qualify for a full rate pension under the TCA method, a person must have 2080 contributions (equivalent to 40 years). These contributions can include up to 20 years HomeCaring periods or PRSI credits.

Following on from the Pensions Commission's recommendations, a number of State pension reforms were enacted in the Social Welfare (Miscellaneous Provisions) Act 2023 on the 14th December 2023, which represent the biggest ever structural reform of the Irish State pension system.

One of the reforms in the 2023 Act was the ten-year phased transition from the YA method of calculation of State Pension (Contributory) to TCA as the sole method of calculation.

TCA resolves many of the anomalies arising from the YA calculation model. The main anomaly within the YA calculation method is that it is possible for people to start paying social insurance later in their working life and yet qualify for a pension at maximum rate. Entitlement to a full pension can in some cases be achieved from as little as ten years of social insurance contributions. Another anomaly arises where a person has a gap in their social insurance contribution record, possibly from periods spent caring for family or travel, and qualifies for a lower pension entitlement than a person with the same number of social insurance contributions. This occurs as their Yearly Average is calculated over the person’s entire ‘working life’.

TCA is a fairer and more transparent method of calculating the contributory pension as it more closely reflects the social insurance contributions made by a person during their working life.

The ten-year transitional arrangements are to avoid a ‘cliff edge’ effect. The first year of phasing-out will begin in January 2025. From 2034 the YA method of calculation will no longer be used, and all State Pension (Contributory) calculations will use the TCA method.

Finally, the rate of payment of State Pension (Contributory) is based on a person's contribution record, including paid and credited contributions, and is not based on levels of income in employment or self-employment.

I trust this clarifies the matter for the Deputy.

State Pensions

Ceisteanna (72)

Cathal Crowe

Ceist:

72. Deputy Cathal Crowe asked the Minister for Social Protection if she will consider changing the rules to allow stamps paid before marriage be taken into account for the State pension (contributory) (details supplied); and if she will make a statement on the matter. [26397/24]

Amharc ar fhreagra

Freagraí scríofa

Minister for Social Protection

The marriage bar was a legal requirement for women in the Irish civil service and some areas of the public service to retire from employment after marriage. While the legislation applied only to the civil and public sector, a similar policy was adopted by other sectors, such as the banking sector. The marriage bar for civil servants was removed from legislation in 1973.

Civil and public servants, including those who worked in our public health service, recruited prior to April 1995 are not entitled to the State Pension (Contributory) and would not have been entitled to it had they continued working as a civil or public servant, regardless of gender and marital status, due to the application of a modified PRSI rate returned as Class B or Class D.

There are no plans to allow social insurance contributions paid at the modified Class B or D rates be reckonable for the State Pension (Contributory).

Provisions exist for the award of a mixed insurance pro rata state pension, where a person has substantial periods of PRSI coverage that are not reckonable for State Pension (Contributory) purposes (ie. modified contributions). In order to qualify for a pro rata pension, a person must have a minimum of 260 full-rate paid contributions since their entry into insurance.

Matters relating to the pension entitlements for civil and public servants recruited prior to April 1995 are a matter for my colleague the Minister for Public Expenditure, NDP Delivery and Reform.

I hope this clarifies the matter for the Deputy.

Gender Recognition

Ceisteanna (73)

Patrick Costello

Ceist:

73. Deputy Patrick Costello asked the Minister for Social Protection further to Parliamentary Question No. 445 of 11 June 2024, for an update on the implementation of recommendation 6A of the 2018 Review of the Gender Recognition Act 2004; and if she will make a statement on the matter. [26400/24]

Amharc ar fhreagra

Freagraí scríofa

Minister for Social Protection (Deputy Heather Humphreys)

Recommendation 6A of the 2018 Review of the Gender Recognition Act 2004 proposes that arrangements be put in place to allow Irish citizens born in Northern Ireland and living outside the State, to apply for a gender recognition certificate.

It will be necessary to introduce legislation to provide that an application may be made by any person entitled to be an Irish citizen under section 6 or section 7 of the Irish Nationality and Citizenship Act, 1956 (as amended). This includes Irish citizens born in Northern Ireland and living outside the State and, also includes Irish citizens born abroad whose parents are Irish.

My Department is examining options in relation to how best to progress this matter.

I trust this clarifies the matter for the Deputy.

Social Welfare Payments

Ceisteanna (74)

Patricia Ryan

Ceist:

74. Deputy Patricia Ryan asked the Minister for Social Protection if she is aware that in many cases, bereavement grant applications are taking six to eight weeks to be paid to those who are in dire need of it; and if she will make a statement on the matter. [26409/24]

Amharc ar fhreagra

Freagraí scríofa

Minister for Social Protection

The Bereavement Grant has been discontinued for some time but under the Supplementary Welfare Allowance (SWA) scheme, my Department may make an Additional Needs Payment (ANP) to help meet essential expenditure which an eligible person could not reasonably be expected to meet from their weekly income. An ANP application can be made for assistance with funeral and burial expenses where there is an inability to pay these costs, in part or in full, by the family of the deceased person without causing hardship. The ANP scheme is demand led and payments are administered by Designated Persons (DPs) in the Community Welfare Service (CWS). Work on hand for ANPs is within the scheme's normal processing levels and fully completed applications, where the required documentation is supplied, are generally processed within ten days. When considering an application from people in financial difficulty for any payment under the SWA scheme, including ANP claims for assistance with funeral and burial expenses, the DP must consider all of the relevant circumstances when examining a case in determining the most appropriate scheme type and level of assistance required. The DP may ask for a number of supporting documents to ensure the customer receives a level of payment appropriate to their needs. Where an application cannot be finalised promptly, the delay is normally due to the need for additional information or documentation and the time it takes for the information to be provided. Upon receipt of this information, the application is then processed quickly. The CWS is committed to providing a quality service to all citizens, ensuring that applications are processed and that decisions on entitlement are made as quickly as possible.I trust this clarifies the matter for the Deputy.

Social Welfare Eligibility

Ceisteanna (75)

Patricia Ryan

Ceist:

75. Deputy Patricia Ryan asked the Minister for Social Protection if she plans to abolish the means test for those applying for carer's allowance. [26410/24]

Amharc ar fhreagra

Freagraí scríofa

Minister for Social Protection

The Government acknowledges the valuable role that family carers play and is fully committed to supporting carers in that role. This commitment is recognised in both the Programme for Government and the National Carers’ Strategy.

The main income supports to carers provided by my department are Carer’s Allowance, Carer’s Benefit, Domiciliary Care Allowance and the Carer’s Support Grant. Spending on these payments is expected to amount to over €1.7 billion this year.

The Carer’s Allowance scheme is the main scheme by which the Department provides income support to carers in the community. In 2024 the expenditure on the Carer’s Allowance scheme is estimated to be over €1.1 billion and there are currently 96,742 people receiving this payment.

The two principal conditions for receipt of Carer’s Allowance are that full time care and attention is required and provided, and that a means test is satisfied. The application of the means-test not only ensures that the recipient has an income need but also that scarce resources are targeted to those with the greatest need.

The use of means tests in the social welfare system is a method of targeting scarce resources to those that have most need. Removal of the means assessment for Carer’s Allowance, would not only change the nature of the scheme but would also have significant policy and budgetary implications. The Carer’s Allowance is not and was never intended to be a payment for the provision of caring.

Since my appointment as Minister, I have made a number of significant improvements to the means test for Carer's Allowance.

• In June 2022 the income disregards were increased from €332.50 to €350 for a single person, and from €665 to €750 for carers with a spouse/partner. The capital and savings disregard for the Carer’s Allowance means assessment was also increased from €20,000 to €50,000.

• Earlier this month the weekly income disregards were increased further, from €350 to €450 for a single person, and from €750 to €900 for carers with a spouse/partner. These changes mean that carers on a reduced rate move to a higher payment. In addition, many carers who previously did not qualify for a payment due to their means are brought into the Carer's Allowance system for the first time.

The means test disregards for Carer's Allowance are the highest in the Social Welfare system.

Notwithstanding these improvements, as part of Budget 2024, I established an Interdepartmental Working Group with the Department of Health and the Department of Children, Equality, Disability, Integration and Youth to examine and review the system of means test for carer's payments. This work is ongoing, and I have asked the Group to report to me on the matter by Quarter 3 of this year.

It is also important to acknowledge that there are a range of other supports for carers provided by the Department which are not based on a means assessment.

• The Carer’s Support Grant can be claimed by carers regardless of their means or social insurance contributions. I increased this grant to €1,850, its highest ever rate.

• Carer's Benefit is a weekly payment based on social insurance contributions rather than a means test and is payable for a period of up to 2 years.

• Domiciliary Care Allowance is payable to a parent or guardian in respect of a child who has a severe disability and requires continual or continuous care and attention substantially over and above the care and attention usually required by a child of the same age. As part of Budget 2024 we have increased the payment by another €10 bringing it to €340 per month.

I trust that this clarifies the issue for the Deputy.