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Illness Benefit Eligibility

Dáil Éireann Debate, Wednesday - 13 May 2020

Wednesday, 13 May 2020

Questions (1186)

Peter Burke

Question:

1186. Deputy Peter Burke asked the Minister for Employment Affairs and Social Protection her plans in place for self-employed persons to receive illness benefit. [4811/20]

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Written answers

The Government is committed to enhancing the position of the self-employed through improving the level of PRSI based benefits available to self-employed people and through a supportive tax regime.

Self-employed persons are liable for PRSI at the Class S rate of 4% which covers them for access to long-term benefits such as State pension (contributory), widow's, widower's or surviving civil partner's pension (contributory), invalidity pension, as well as some treatment benefits, maternity and paternity benefit, adoptive benefit and guardians payment (contributory). Class S contributions do not provide access to short-term social insurance benefits such as illness benefit. However, the means tested supplementary welfare allowance scheme may be available to those who are experiencing financial difficulty.

Self-employed contributors have been covered for invalidity pension since December 2017. This gives the self-employed access to a safety-net of income supports if they become permanently incapable of work as a result of a long-term illness or disability without a means test.

It is the Government’s intention to keep under review the further extension of benefits to self-employed people. In doing this, it will take account of results of the 2017 survey of self-employed workers, which indicated that self-employed people are open to paying a higher rate of social insurance in return for additional benefits, and the actuarial review of the social insurance fund which was undertaken by KPMG. This review found that the combined cost of introducing the invalidity, illness, jobseeker’s and carer’s benefits for class S contributions was estimated to be €223 million for 2020.

I would like to draw the Deputy’s attention to the announcement made by the Taoiseach on 2 March 2020 in relation to providing self-employed people with financial assistance, where they are required to self-isolate as a probable source of infection within the public health guidelines or where they have a medically confirmed diagnosis of COVID-19 .

This assistance has been provided for under emergency legislation Health (Preservation and Protection and other Emergency Measures in the Public Interest) Act 2020 and subsequent regulations.

Any plans to extend illness benefit to self-employed persons in other illness situations would have to be considered in the overall budgetary policy and budgetary context.

I hope this clarifies the position for the Deputy.

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