Written Answers Nos. 1601-1623
1601. Deputy Paul Murphy asked the Minister for Employment Affairs and Social Protection if her Department funds the paying of holiday pay for those on community employment schemes who pass away while working on the scheme and who have built up a holiday entitlement. [55196/17]
View answerCommunity Employment participants, similar to other workers, are subject to the rules of the Organisation of Working Time Act 1997. It is the responsibility of the employers (CE Sponsors) to ensure that if a participant passes away while on a CE Scheme, any entitlement due in lieu of untaken annual leave is paid to the personal representative of the deceased in line with the Working Time Act. Appropriate funding will be provided by my Department.
I trust this clarifies the matter for the Deputy.
1602. Deputy Peter Fitzpatrick asked the Minister for Employment Affairs and Social Protection her plans to initiate legislation to regulate tip-sharing arrangements in the service industry; and if she will make a statement on the matter. [55201/17]
View answerEmployees in Ireland enjoy a robust suite of employment rights including one of the highest national minimum wages in the EU. Employees who believe an unlawful deduction has been made from their wages by their employer may pursue a case under the Payment of Wages Act 1991 to the Workplace Relations Commission. The matter can be dealt with by way of mediation or adjudication leading to a decision enforceable through the District Court.
I understand that tips are generally in addition to an employee’s wages. How tips are treated in a particular employment should be a matter for agreement between the employees and their employer if the matter is not addressed as part of the employment contract. I have no plans to regulate tip sharing arrangements in the service industry.
1603. Deputy Peadar Tóibín asked the Minister for Employment Affairs and Social Protection the vacant properties and land not in use, owned, rented or leased by her Department or by bodies and agencies under the aegis of her Department by square footage for buildings and acres for land, in tabular form; the address and location of these properties; and the last date of occupancy or use of these properties. [55211/17]
View answerMy Department currently has approximately 300 premises under its remit.
One of these premises, in Damastown Industrial Estate Mulhuddart Dublin 15, is unoccupied since March 2016. The building is leased and is 532 square meters in size. Part of it is in use as a file storage facility for Departmental files. It is expected that this premises will be occupied in the future.
The statutory bodies operating under the aegis of my Department are the Citizens Information Board, the Low Pay Commission, the Pensions Authority, the Pensions Council and the Social Welfare Tribunal. Of these only the Citizen’s Information Board has property that is vacant. See the table.
|
Property name/location |
Ground Floor, Knappagh, Strandhill Road, Sligo |
|
Owned/rented/leased |
Owned |
|
Square footage |
142.72 square metres |
|
Date of occupancy |
Property unoccupied for several years. Note currently being prepared seeking Minister’s formal consent for disposal as per DPER Circular 17/2016. |
1604. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection if an application for jobseeker's allowance will be reopened in case of a person (details supplied); and if she will make a statement on the matter. [55236/17]
View answerAccording to our records the person concerned submitted a claim for jobseekers allowance in September 2017 but did not provide the required information and the claim was closed. On 22/12/17 the person concerned re-opened the jobseekers allowance claim and relevant documentation was requested in order to complete a means test. To-date the required information has not been received by this Department.
I trust this clarifies the matter for the Deputy.
Question No. 1605 withdrawn.
1606. Deputy James Browne asked the Minister for Employment Affairs and Social Protection further to Parliamentary Question No. 500 of 12 December 2017, the international evidence that justifies the six and seven-year lifetime limit for those on work programmes such as the community employment scheme; and if she will make a statement on the matter. [55282/17]
View answerMy Department published a report in April 2017 – An Analysis of the Community Employment Programme. This report highlighted research undertaken by the Organisation for Economic Co-operation and Development (OECD), which promotes policies that will improve the economic and social well-being of people around the world and provide a forum in which governments can work together to share experiences and seek solutions to common problems. Their research suggests that in order for government funded labour market policies, such as CE, to be effective they should be temporary and should not become a form of subsided permanent employment.
Participation on Community Employment (CE) and other work programmes is intended to be for a temporary fixed-term. These placements are not full-time sustainable jobs. Overall participation limits are in place to ensure that as many unemployed people as possible are able to benefit from the scheme. My Department’s priority in supporting work programmes is to provide access to good quality work experience and training qualifications to support the progression into employment of job seekers and other vulnerable groups.
I trust this clarifies the matter for the Deputy.
1607. Deputy Michael Healy-Rae asked the Minister for Employment Affairs and Social Protection the status of an application to transfer a carer's allowance by a person (details supplied); and if she will make a statement on the matter. [1004/18]
View answerI confirm that my department received an application for carer’s allowance (CA) from the person concerned on 18 December 2017.
The application was awarded to the person concerned on 12 January 2018 with effect from 18 January 2018. First payment will issue to her nominated bank account on 18 January 2018.
The person concerned was notified on 12 January 2018 of this decision, the reason for it and of her right of review and appeal.
The spouse of the person concerned was in receipt of CA in respect of the care recipient and was notified on 9 January 2018 that his entitlement to CA will cease from 17 January 2018 as he is now no longer providing full time care and attention.
I hope this clarifies the matter for the Deputy.
1608. Deputy Pat Breen asked the Minister for Employment Affairs and Social Protection when payment will issue to a person (details supplied); and if she will make a statement on the matter. [1028/18]
View answerThis lady was notified on the 4th January 2018 that her domiciliary care allowance was awarded on appeal from the 1st March 2017. Arrears due for this period will issue with the January 2018 payment on the 16th January 2018.
I hope this clarifies the matter for the Deputy.
1609. Deputy Pat Breen asked the Minister for Employment Affairs and Social Protection when payment will issue to a person (details supplied); and if she will make a statement on the matter. [1029/18]
View answerCarer's allowance (CA) is a means-tested social assistance payment, made to persons who are providing full-time care and attention to a person who has such a disability that they require that level of care.
Under social welfare legislation, CA for the care of a care recipient who is aged less than 16 years can only be successful where domiciliary care allowance (DCA) is awarded.
An application for carer's allowance was received from the person concerned on 15 March 2017.
As DCA was not awarded in respect of the care recipient, the application was disallowed. The person concerned was notified on 5 April 2017 of this decision, the reason for it and of her right of review and appeal.
Following a successful DCA appeal, the person concerned requested a review of this decision on 4 January 2018. The review is currently being processed and once completed, the person concerned will be notified directly of the outcome.
I hope this clarifies the matter for the Deputy.
1610. Deputy Róisín Shortall asked the Minister for Employment Affairs and Social Protection the number of households in receipt of the fuel allowance at the end of 2017; and the cost to the Exchequer of this benefit for each of the past three years. [1032/18]
View answerThe following table provides details of the spending by the Department of Employment Affairs and Social Protection on Fuel Allowance in the years 2015 to 2017, inclusive, and the number of households in receipt of Fuel Allowance in these years.
|
Fuel Allowance |
2015 Outturn |
2016 Outturn |
2017 Provisional Outturn* |
|
Number of Households |
405,098 |
385,978 |
358,744 |
|
Expenditure (€000) |
216,223 |
234,812 |
226,184 |
* 2017 figures are provisional and subject to change.
1611. Deputy John McGuinness asked the Minister for Employment Affairs and Social Protection if an application for an invalidity pension now under review will be expedited and approved in the case of a person (details supplied). [1035/18]
View answerInvalidity pension (IP) is a payment for people who are permanently incapable of work because of illness or incapacity and who satisfy the pay related social insurance (PRSI) contribution conditions.
The department received an application for IP for the gentleman concerned on 18 September 2017. His application was disallowed IP on the grounds that the medical conditions for the scheme were not satisfied. He was notified on the 05 December 2017 of this decision, the reasons for it and of his right of review and appeal to the independent Social Welfare Appeals Office (SWAO).
The gentleman concerned has requested a review of the decision and has submitted additional medical evidence in support of his application. The review will be processed as quickly as possible and when a decision is made he will be notified directly of the outcome. If the outcome of the review is to confirm the decision to disallow, he will retain the right to appeal to the SWAO.
I hope this clarifies the matter for the Deputy.
1612. Deputy John McGuinness asked the Minister for Employment Affairs and Social Protection if long-term benefit payments will be put in place for a person (details supplied). [1037/18]
View answer1650. Deputy John McGuinness asked the Minister for Employment Affairs and Social Protection if long-term benefit payments will be put in place for a person (details supplied); and if the correspondence submitted by this Deputy relative to the case prior to Christmas will be examined and a response issued to the person. [1403/18]
View answerI propose to take Questions Nos. 1612 and 1650 together.
The person concerned has been requested by her local Intreo Centre to engage with them to discuss her current payment but, as of yet, she has failed to do so. If the person concerned wishes to, she is welcome to contact her local Intreo Centre to discuss the payment options that are available to her.
I trust that this clarifies the matter for the Deputy.
1613. Deputy Paul Kehoe asked the Minister for Employment Affairs and Social Protection the status of the partial capacity benefit application by a person (details supplied); when a decision will be made; and if she will make a statement on the matter. [1040/18]
View answerPartial Capacity Benefit (PCB) is a Social Welfare scheme which allows a person who has been in receipt of Illness Benefit for six months and who may not have full capacity for work, to return to employment and continue to receive a partial or full payment from my Department. An Illness Benefit customer who applies for PCB will, in the first instance, be assessed by a Medical Assessor who will review the restriction, if any, on their capacity for work. A person assessed with a moderate level of work incapacity will receive 50% of their current payment, a person assessed with a severe level will receive 75% of their payment and a person assessed with a profound level will get full payment.
The person concerned currently has a claim for Illness Benefit and has made an application for Partial Capacity Benefit (PCB). This application was received on 29 November 2017. The application has been referred to a Medical Assessor for an opinion on the level of work restriction. On receipt of this opinion a decision will be made on the case and the person concerned will be notified of the position. Every effort is being made to expedite the matter.
I hope this clarifies the matter for the Deputy.
1614. Deputy Paul Kehoe asked the Minister for Employment Affairs and Social Protection the status of returning a person (details supplied) to invalidity pension from partial capacity benefit now that the requested information has been submitted; when a decision will be issued; and if she will make a statement on the matter. [1043/18]
View answerPartial Capacity Benefit (PCB) is a social welfare scheme which allows a person return to employment if they have reduced capacity for work, and to continue to receive a payment from my Department. A person who applies for PCB will, in the first instance, be assessed by a Medical Assessor who expresses an opinion on the degree of partial capacity. A person assessed with a moderate restriction on capacity for work gets 50% of their personal rate of payment plus any increases due in respect of an adult dependant and children; a person assessed with a severe work restriction gets 75% and a person assessed with a profound level gets 100%.
We have received the documentation submitted with regard to returning to Invalidity Pension from Partial Capacity Benefit.
Partial Capacity Benefit will be stopped and Invalidity Pension will be restored with effect from 26 October 2017. Any arrears due will also issue to the person concerned.
1615. Deputy Michael Healy-Rae asked the Minister for Employment Affairs and Social Protection the status of an application by a person (details supplied); and if she will make a statement on the matter. [1082/18]
View answerThe gentleman referred to has been awarded invalidity pension with effect from the 14 December 2017. Payment including arrears due from 14 December 2017 will issue to his nominated bank account on the 18 January 2018. The gentleman in question was notified of this decision on the 11 January 2018.
I hope this clarifies the matter for the Deputy.
1616. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the full-year cost of increasing all social insurance payments by amounts (details supplied), in tabular form; and if she will make a statement on the matter. [1222/18]
View answer1617. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the full-year cost of increasing all social assistance payments by amounts (details supplied), in tabular form; and if she will make a statement on the matter. [1223/18]
View answer1619. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the full-year cost of increasing the living alone allowance by amounts (details supplied), in tabular form; and if she will make a statement on the matter. [1225/18]
View answer1620. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the full-year cost of increasing the fuel allowance by one, two, three, four, five and six weeks, respectively, in tabular form; and if she will make a statement on the matter. [1226/18]
View answer1625. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the cost of increasing the carer's support grant by amounts (details supplied), in tabular form; and if she will make a statement on the matter. [1232/18]
View answer1628. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the full-year cost of the household benefits package; the full-year cost of increasing the monthly electricity allowance and the natural gas allowance by €5 and €10, in tabular form; and if she will make a statement on the matter. [1235/18]
View answer1632. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the full-year cost of extending the Christmas bonus to persons in receipt of the invalidity pension; and if she will make a statement on the matter. [1239/18]
View answer1637. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the cost of increasing disability allowance, carer's allowance, blind pension and invalidity pension by €5, €10, €15 and €20, respectively, in tabular form; and if she will make a statement on the matter. [1245/18]
View answerI propose to take Questions Nos. 1616, 1617, 1619, 1620, 1625, 1628, 1632 and 1637 together.
The costings sought by Deputy O’Dea are detailed in the following series of tables.
Table 1: Full year cost of varying amounts in all weekly social insurance payments
|
Schemes |
€5 increase |
€10 increase |
€15 increase |
€20 increase |
€25 increase |
|
€m |
€m |
€m |
€m |
€m |
|
|
Social Insurance Schemes |
181.26 |
362.52 |
543.78 |
725.04 |
906.3 |
Table 2: Full year cost of varying amounts in all weekly social assistance payments
|
Schemes |
€5 increase |
€10 increase |
€15 increase |
€20 increase |
€25 increase |
|
€m |
€m |
€m |
€m |
€m |
|
|
Social Assistance Schemes |
159.1 |
318.2 |
477.3 |
636.4 |
795.5 |
Table 3: Full year cost of increasing the Living Alone Allowance by varying amounts
|
Weekly Increase |
Cost €m |
|
€2.00 |
20.87 |
|
€3.00 |
31.31 |
|
€4.00 |
41.74 |
|
€5.00 |
52.18 |
|
€6.00 |
62.61 |
|
€7.00 |
73.05 |
|
€8.00 |
83.48 |
|
€9.00 |
93.92 |
|
€10.00 |
104.35 |
Table 4: Full year cost of increasing the duration of the Fuel Allowance by varying numbers of weeks
|
Number of weeks |
Cost in 2018] €m |
|
1 week |
8.58 |
|
2 weeks |
17.16 |
|
3 weeks |
25.74 |
|
4 weeks |
34.32 |
|
5 weeks |
42.90 |
|
6 weeks |
51.47 |
Table 5: Full year cost of increasing the Carer’s Support Grant by varying amounts
|
Annual Increase |
Cost in 2018 €m |
|
€50.00 |
5.63 |
|
€100.00 |
11.26 |
|
€150.00 |
16.89 |
|
€200.00 |
22.53 |
|
€250.00 |
28.16 |
Table 6: Full year cost of increasing the monthly electricity allowance and the natural gas allowance by varying amounts
|
Monthly Electricity Allowance |
Monthly Natural Gas Allowance |
||
|
Monthly Increase |
Cost €m |
Monthly Increase |
Cost €m |
|
€5.00 |
23.30 |
€5.00 |
2.84 |
|
€10.00 |
46.61 |
€10.00 |
5.70 |
The 2018 Revised Estimates for Public Services provides €246.8 million in 2018 for the household benefits package.
Table 7: Full year cost of increasing Disability Allowance, Carer’s Allowance, Blind Pension and Invalidity Pension by varying amounts
|
Scheme |
€5 increase €m |
€10 increase €m |
€15 increase €m |
€20 increase €m |
|
Disability Allowance |
37.5 |
75.1 |
112.6 |
150.2 |
|
Carer’s Allowance |
10.9 |
21.8 |
32.6 |
43.5 |
|
Blind Pension |
0.3 |
0.7 |
1.0 |
1.4 |
|
Invalidity Pension |
17.2 |
34.3 |
51.5 |
68.6 |
An 85% Christmas bonus was paid in December 2017 to over 1.2 million long-term social welfare recipients, including all recipients of invalidity pension. The cost of the Christmas Bonus paid to invalidity pension recipients is estimated at €11.1 million.
The costs shown above are on a full year basis and are based on the estimated number of recipients in 2018. It should also be noted that these costings include proportionate increases for qualified adults and for those on reduced rates of payment, where relevant.
1618. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the full-year cost of reversing the changes made in 2012 to the bands for the contributory pension; and if she will make a statement on the matter. [1224/18]
View answer1648. Deputy Michael Healy-Rae asked the Minister for Employment Affairs and Social Protection if she will address concerns with regard to pensions (details supplied); and if she will make a statement on the matter. [1370/18]
View answer1667. Deputy Seamus Healy asked the Minister for Employment Affairs and Social Protection her plans to reverse the 2012 changes to the State pension; and if she will make a statement on the matter. [1794/18]
View answerI propose to take Questions Nos. 1618, 1648 and 1667 together.
The changes made to State Pension (contributory) rate bands in Budget 2012, affected those pensioners who had a yearly average of 39 or less weekly social insurance contributions over the course of their working life.
The current rate bands were introduced from September 2012, replacing previous rates introduced in 2000. The rate bands in place between 2000 and 2012 were more generous than those in place before and after that period, and were a feature of the economic and political environment at that time.
The economic crash changed the focus and while other payments were reduced as a result, the core rates of the pension were maintained. Instead of reducing those payments, which many vulnerable pensioners were solely reliant upon, the rates paid to new pensioners who both have additional means and lesser PRSI contribution records were reduced.
It should be noted that, for a person with a yearly average of 20 contributions, the new rate of payment introduced in 2012 was still higher than the maximum rate that was in place at the start of 2006. The rate for such pensioners, while 85% of the maximum rate in place now, is higher, in real terms, than was in place at that time, even after inflation is taken into account. Given the economic context of what happened in the following years, this has been a significant achievement.
Also, it should be noted that in most if not all countries, in Europe and beyond, pension reforms have been introduced to make them more sustainable, and these will generally result in people having different payments depending upon when they reach pension age. The only way to avoid this would be to introduce the reforms for existing pensioners, and decrease the incomes some pensioners have become dependent upon.
The 2012 rate bands more closely reflect the social insurance contributions history of a person than those in place between 2000 and 2012. The current rate bands still provide pensions to people which are better than proportionate with their level of contribution. A person with only 20 years of contributions over nearly 50 years will still get an 85% pension, which compares favourably with contributory pensions in other EU countries.
It is estimated that to revert to the previous bands from January 2018 would result in an annual cost of well over €70 million extra in 2018, and this annual cost would increase by an estimated €10 to €12 million extra each following year.
My Department has examined in depth various options that would provide some relief to those who would have a higher contributory pension, had the ratebands not been amended in 2012. A report is being finalised on this matter which I intend to bring to cabinet committee shortly and subsequently to Government for consideration.
The National Pensions Framework proposed that a total contribution approach should replace the yearly average approach to the calculation of the State Pension (contributory). A discussion paper is being drafted by my Department and it is hoped to start the consultation process with relevant stakeholders including interest groups, representative bodies and the Oireachtas shortly. Following the consultation period, a proposal to Government will be submitted seeking approval of the new approach.
The main aim of Government policy on pensions is to make sure that pensions are affordable, sustainable and keep their value in the coming years. The reforms that are planned will result in a more inclusive and fairer pension system for all citizens.
I hope this clarifies the matter for the Deputies.
1621. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the full-year cost of increasing the back to school clothing and footwear allowance by amounts (details supplied), in tabular form; and if she will make a statement on the matter. [1227/18]
View answerThe back to school clothing and footwear allowance (BSCFA) scheme provides a once-off payment to eligible families to assist with the extra costs when children start school each autumn.
End of year records show that under the 2017 BSCFA scheme, payments were made to 151,000 families in respect of over 275,000 children at a cost of €49 million. The rate of payment in 2017 was increased by 25% to €125 in respect of children aged 4 to 11 and €250 for children aged 12 years and over in second level education.
Using the total number of children covered by the scheme in 2017 as a basis, the additional cost to increase the BSCFA rates by the amounts listed is set out in the attached tabular statement. Changes to increase the rate of payment of any scheme administered by my Department would have to be considered in a budgetary context.
I hope this clarifies the matter for the Deputy.
Estimated Full -Year Additional Cost to Increase BSCFA rates by amounts listed:
|
Amount of increase |
Cost |
|
€5 |
€1,375,000 |
|
€10 |
€2,750,000 |
|
€15 |
€4,125,000 |
|
€20 |
€5,500,000 |
|
€25 |
€6,875,000 |
1622. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the full-year cost of reversing changes made to the one-parent family payment in 2012, in tabular form; and if she will make a statement on the matter. [1228/18]
View answerThe full year cost of reversing changes made to the One-Parent Family Payment (OFP) in 2012 would be very difficult to estimate with any accuracy.
There are three significant barriers to undertaking such an exercise. Firstly, a reversal of the amendments made to the OFP scheme could result in a cohort of lone parents that are currently not in receipt of a social welfare payment becoming eligible and therefore moving onto a social welfare payment. As members of this cohort are not currently in receipt of a social welfare payment it would be difficult to for the Department to estimate the numbers involved.
Secondly, some customers could seek to move from alternative payments such as Jobseekers Allowance (JA), the Jobseeker’s Transitional Payment (JST) and the Back to Work Family Dividend (BTWFD) back to the OFP. Again, it would be difficult for the Department to estimate the magnitude of this flow between schemes with any degree of accuracy.
Finally, reversing the changes to the OFP would also increase the incidence of dual payments of OFP and the Working Family Payment (WFP) (formerly FIS). It would not be possible to estimate the degree to which Working Family Payments might reduce, without having detailed knowledge of individuals’ working patterns and the degree to which these might change.
These unknown factors are critical to providing a reliable costing. The Department is therefore not in a position to provide the costing requested.
1623. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the full-year cost of extending jobseeker's payments to the self-employed, in tabular form; and if she will make a statement on the matter. [1229/18]
View answerThe jobseeker’s schemes provide income support for people who have lost work and are unable to find alternative full-time employment. The 2018 Estimates for my Department provide for expenditure this year on the jobseeker’s schemes of €2.17 billion.
The issue of extending additional social insurance benefits to the self-employed paying Class S PRSI was considered in the Actuarial Review of the Social Insurance fund (SIF) as at 31 December, 2015, which I published on the 18th October 2017. As part of the review the independent consultants were required to project the additional expenditure if a number of additional benefits, including jobseeker’s benefit, were extended to Class S self-employed workers and the PRSI contribution rates required to provide these benefits on a revenue neutral basis.
The review found that the combined cost of introducing the invalidity, illness, jobseeker’s and carer’s benefits for Class S contributions is estimated to be €118 million in 2018, rising steadily to €223 million in 2020.
The table below shows, the projected cost of the jobseeker’s benefit scheme under the current qualification criteria; the aggregate projected cost under a scenario whereby jobseeker’s benefit is extended to Class S self-employed contributors from 2018 onward; and the difference between the two which reflects the cost of extending the payment to Class S contributors. For example, the cost in 2018 as per the table below would be €45 million, rising to €81 million in 2025.
|
Year |
Jobseeker's Benefit Expenditure (€ millions) |
||
|
|
Total JB expenditure reflecting those currently entitled only |
Total JB expenditure reflecting class S in addition |
Incremental JB expenditure due to extension |
|
2018 |
301 |
346 |
45 |
|
2019 |
282 |
340 |
58 |
|
2020 |
291 |
351 |
60 |
|
2021 |
304 |
367 |
63 |
|
2022 |
318 |
385 |
67 |
|
2023 |
336 |
407 |
71 |
|
2024 |
354 |
429 |
75 |
|
2025 |
375 |
455 |
81 |
|
2030 |
410 |
500 |
91 |
|
2035 |
453 |
556 |
103 |
|
2040 |
500 |
613 |
112 |
|
2045 |
547 |
670 |
123 |
|
2050 |
581 |
705 |
125 |
|
2055 |
624 |
758 |
134 |
|
2060 |
671 |
815 |
144 |
|
2065 |
737 |
895 |
158 |
|
2070 |
820 |
1,000 |
179 |
|
2071 |
840 |
1,025 |
185 |
The projected expenditure on jobseeker’s benefit assumes the same incidence rate as prevails in the employed (PRSI Class A) population and that the same scheme rules would apply were the scheme extended to the self-employed.
The review indicates that, where these benefits are extended to the self-employed, the class S rate of PRSI contribution would need to increase substantially in order to ensure that the benefits are delivered in a revenue neutral manner. It estimates that when expenditure on the additional benefits is considered over the entire projection period, PRSI rates would need to increase by 94% for all additional benefits, or by 14% in respect of jobseeker’s benefit, under a scenario of no subvention from the Exchequer.
This increased contribution is attributable to the costs of extending these additional benefits to PRSI Class S contributors. It does not take account of the value to PRSI Class S contributors of access to the range of existing benefits, and in particular state pension contributory.
It is important to note that the jobseeker’s allowance scheme, which is a means-tested payment, is available to all jobseekers, including employees and those in self-employment.
