Dáil Éireann Debate, Thursday - 19 September 2013
91. Deputy Tom Fleming asked the Minister for Social Protection if she will address the difficulties experienced by persons who were formerly self employed and who are now de-listed off the business register (details supplied); and if she will make a statement on the matter. [38887/13]
View answerSelf-employed persons are liable for pay related social insurance (PRSI) at a 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). This compares to employees in respect of whom a combined 14.75% rate, under full-rate PRSI Class A, is paid giving entitlement to the full range of social insurance benefits including jobseeker’s benefit.
Any person of working age who does not qualify for jobseeker’s benefit may claim means tested jobseeker’s allowance. Subject to means and other qualifying conditions, self-employed persons may claim jobseeker’s allowance if their business ceases or there is reduced demand for their services. Typically over 80% of jobseeker’s allowance claims from self-employed persons have been awarded over recent years.
Previously self-employed persons in receipt of jobseeker’s allowance have access to the full range of activation measures available through the State. Given the scale of unemployment levels, the key objective of activation policy and labour market initiatives is to offer assistance to those most in need of support in securing work and achieving financial self-sufficiency. This policy objective prioritises scarce resources to those in receipt of qualifying welfare payments. Accordingly the employment services and schemes provided by the Department are focused in the first instance on this cohort of unemployed people.
However, many services are available to the formerly self-employed who are not in receipt of a social welfare payment.
Some employment services, such as assistance with job-search activities and the use of online job search tools, are available to people if they register with the Department’s employment services offices, regardless of their social welfare status. Unemployed persons, including the previously self-employed, not in receipt of payments may also be eligible to avail of up-skilling opportunities, for example through FÁS training, but are not eligible to receive a training allowance while undertaking the course. Springboard courses are open to people who were previously self-employed, regardless of their social welfare status.
Additionally it may be noted that the primary purpose of social insurance credits is to secure the social welfare benefits and pensions of employees by covering gaps in insurance where they are not in a position to pay social insurance, such as during periods of unemployment or illness. The class at which a contributor last paid determines entitlement to credited contributions and, while credits are not available to a person who has only self-employed contributions, persons who cease to be covered by compulsory social insurance, may opt to protect their existing long-term social insurance pension entitlements by becoming insured on a voluntary basis and paying voluntary contributions.
