Dáil Éireann Debate, Tuesday - 9 July 2013
308. Deputy Patrick O'Donovan asked the Minister for Social Protection when she expects publication of the report of the commission established to look at PRSI rates for the self-employed; her plans to bring forward legislation in the area; her further plans to assist by way of social welfare, those self-employed persons who cannot obtain employment; and if she will make a statement on the matter. [33157/13]
View answer321. Deputy Patrick O'Donovan asked the Minister for Social Protection her plans to introduce a specific stamp rate for self-employed persons involved in the small and medium business sector; and if she will make a statement on the matter. [33372/13]
View answer346. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which provision has been made to facilitate easier access to relevant social welfare payments for persons previously self-employed and currently long-term unemployed; and if she will make a statement on the matter. [33532/13]
View answerI propose to take Questions Nos. 308, 321 and 346 together.
Self-employed persons are liable for PRSI at the Class S rate of 4% which entitles them to access long-term benefits such as State pension (contributory) and widow's, widower's or surviving civil partner's pension (contributory). In 2011 I established the Advisory Group on Tax and Social Welfare to meet the commitment made in the Programme for Government. The Advisory Group is charged with, inter alia, examining and reporting on issues involved in providing social insurance cover for self-employed persons in order to establish whether or not such cover is technically feasible and financially sustainable.
The Advisory Group’s overall method of working is based on producing modular reports on the priority areas identified in the Terms of Reference. Where possible, the aim is to provide recommendations that can be acted upon in time for the annual budget, estimates and legislative cycle and to allow the Government to best address its commitments under the EU-IMF Programme of Financial Support. The Groups report on the issues involved in providing social insurance cover for self-employed persons so as to establish whether or not such cover is technically feasible and financially sustainable was submitted to me in May 2013. The report will be published in due course.
Any proposal to change the treatment of self-employed persons in relation to the PRSI contributions to be paid and benefit entitlements could only be considered in a Budgetary context.
Self-employed persons whose businesses fail or suffer from reduced demand may, however, access social welfare support by establishing entitlement to assistance-based payments such as jobseeker’s allowance. They can apply for the means-tested jobseeker’s allowance if their business ceases or if they are on low income as a result of a downturn in demand for their services. In general, their means will take account of the level of earnings in the last twelve months in determining their expected income for the following year and, in the current climate, account is taken of the downward trend in the economy. As in the case of a non-self-employed claimant for jobseeker’s allowance, the means of husband/wife, civil partner or co-habitant will be taken into account in deciding on entitlement to a payment.
