Women disproportionately hit by contributory pension scheme cuts

Welfare records show that women have been disproportionately hit by cuts to the contributory pension scheme introduced in 2012.

The Depart of Social Protection has released figures for 47,136 people who qualified for the contributory pension since September 1, 2012.

The figures confirmed the internal warnings, prepared before Budget 2012, which said that traditionally unequal childcare arrangements meant women would likely suffer more when the cuts were introduced.

The department also revealed that the homemakers’ credit — supposed to offset the inequality — was abandoned due to expense. It would cost €160m a year to give all mothers full social insurance credits for their work at home.

The new figures cover 47,136 recent pensioners. These were the first people to be hit by a reclassification of PRSI contributions in 2012 which saw cuts of up to €1,497 a year in entitlements. The cuts were graded differently depending on the average number of weeks a person worked during their career.

- The largest annual cut, of €1,497, was experienced by those with an average of 20 to 29 weeks of PRSI contributions per year. The figures show that 66% of those who qualified in this category since September 2012 were women;

- The next largest annual cut, of €1,180, affected those with a 15- to 19-week average. Since September 2012, 61% of new pensioners in this category were women;

- Just over half of those in the 30- to 39-week category were women, these suffered a €977 cut;

- Men accounted for 77% of those who qualified with a 40- to 47-week average and there was no cut to these entitlements.

The figures were released by social Protection Minister Joan Burton to Dublin South Central TD Joan Collins.

Ms Burton also confirmed that the decision to introduce a homemakers credit, which was supposed to lessen the impact on women, was not pursued primarily because of cost.

Ms Burton said if the State was to effectively wipe out the effect of the marriage bar, and give PRSI credits to women for work at home back to 1953, it would cost €160m a year.

Ms Collins said the way the axe fell could not be justified.

“The fact that a Labour minister can justify inequality in accessing pension payments for women since 1953 and justify that the introduction of homemaker credits raises issues, most notable costs, is a new low for Labour,” said Ms Collins. “Equality should not be based on economics but should be based on a right.

“The fact women were made leave the work force because of a marriage bar and as a consequence has effected their pension was an injustice in itself, but then too be told that women will be denied that their labour at caring and raising families at home is not to be taken into account because it will cost €160m, which would be spent in the local economy, is outrageous.”