Dáil Éireann Debate, Wednesday - 19 December 2018
83. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the number of self-employed persons that have qualified for the invalidity pension; the date on which jobseeker's benefit will be extended to the self-employed; the estimated cost of extending the benefit; and if she will make a statement on the matter. [53322/18]
View answerThis Government is committed to encouraging self-employment and entrepreneurship and this includes improving the level of PRSI based benefits available to self-employed people while ensuring the sustainability of the Social Insurance Fund.
Invalidity Pension (IP) was extended to the self-employed from 1 December 2017 and since then 470 customers whose social insurance record included self-employed ("Class S") PRSI contributions have been awarded IP.
The new scheme for the self-employed, which I announced as part of the 2019 Budget measures, will extend a PRSI based benefit to the self-employed who lose employment.
Applicants will have to satisfy the qualifying conditions for the new scheme including, satisfying a PRSI contribution requirement and have sustained a substantial loss of employment and, as a consequence, a significant loss of income. The statutory conditions and requirements for the scheme are being worked through by officials at this time.
It is difficult to estimate the numbers of self-employed that will apply and qualify for the new scheme. The expected take up and costs for this scheme are reliant on the labour market as it evolves and the overall performance of the economy.
It is estimated that some 1,000 could benefit from the scheme in 2019 and approximately 6,500 could benefit at any point in time in a full year. It is intended that the scheme will be introduced in November 2019 with an estimated cost of approximately €2 million. The cost in 2020 which will be the first full year of the scheme year is estimated at approximately €31 million.
