Dáil Éireann Debate, Tuesday - 5 December 2017
506. Deputy Thomas Byrne asked the Minister for Employment Affairs and Social Protection her plans to deal with self-employed persons who have become ill before 2016 who are still ill and would otherwise qualify for invalidity pension; and if they can apply for invalidity pension. [51924/17]
View answerSelf-employed workers are eligible to apply for invalidity pension from 1st December 2017.
This is a major reform of the social insurance system as self-employed people could have access to income support if they become permanently incapable of work as a result of an illness or disability without having to go through a means test.
To qualify, a person must have been incapable of work for at least 12 months and be likely to be incapable of work for at least another 12 months, or be permanently incapable of work (such as in certain cases of very serious illness or disability) and meet the relevant social insurance conditions. Employed and self-employed people are subject to a similar set of qualifying criteria in that they must have the appropriate number of social insurance contributions in the relevant tax year (which in turn depends on when the application is made).
I am assuming that the Deputy is referring to the social insurance contribution conditions and the effect that this might have on entitlement. For all claims received on or after 1st December 2017, the claimant must have 260 paid PRSI contributions (Class A, E, H or S) since entering social insurance and 48 contributions paid or credited (Class A, E, H or S) in the last or second last complete tax/contribution year before the date of claim. The last complete contribution year is the last complete tax year before the date of the claim.
For example, if a claim is made for Invalidity Pension in December 2017, the last complete tax/contribution year is 2016 and the second last complete tax/contribution year is 2015.
In introducing this important measure, it was intended that it would be done on a similar basis for self-employed as for employees. Therefore, there will be self-employed people who meet the incapacity criteria for invalidity pension, but who do not satisfy the social insurance contribution conditionality for the scheme. This may also be the case for some employees. There are no plans to change the social insurance contribution conditions for Invalidity Pension for employees and self-employed. Such a measure would have financial implications and have to be considered in a budgetary context.
Where a person does not qualify for Invalidity Pension they may apply, as before, for the means tested disability allowance scheme or if there is an immediate need, for the means tested supplementary welfare allowance scheme.
I hope that this clarifies matters for the Deputy.
