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Social Welfare Eligibility

Dáil Éireann Debate, Tuesday - 28 July 2020

Tuesday, 28 July 2020

Questions (604, 611, 627)

Thomas Pringle

Question:

604. Deputy Thomas Pringle asked the Minister for Employment Affairs and Social Protection the reason for taking a divergent approach to persons with dual employee self-employed income from the approach taken with persons that have dual employee social protection incomes; and if she will make a statement on the matter. [18376/20]

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Pearse Doherty

Question:

611. Deputy Pearse Doherty asked the Minister for Employment Affairs and Social Protection if combined incomes from employment and self-employment are used when calculating the average income rate of the pandemic unemployment payment; and if she will make a statement on the matter. [18586/20]

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Verona Murphy

Question:

627. Deputy Verona Murphy asked the Minister for Employment Affairs and Social Protection the reason the rerating of the pandemic unemployment payment for self-employed persons does not take into account the person’s income at the time immediate to Covid-19 closures; the additional supports which will be available to the self-employed whose businesses remain closed but still generate running expenses by means of utility bills and general services when the business is not generating an income; and if she will make a statement on the matter. [18982/20]

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Written answers

I propose to take Questions Nos. 604, 611 and 627 together.

The COVID 19 pandemic unemployment payment was introduced as an emergency measure to meet the surge in unemployment which resulted from the effects of the Coronavirus pandemic.  In order to ensure that the scheme was simple and accessible for the unprecedented number of applicants, a flat payment rate was introduced. The Pandemic Unemployment Payment is now linked to prior earnings to ensure that it continues to be a strong support but is fair and targeted.

Where a person is self-employed their gross average weekly income for 2018, the last tax year for which verifiable data on self-employed income is available, is used to calculate the rate of the pandemic unemployment payment.   Combining employee and self-employed income could potentially reduce average weekly earnings in the case of employee earnings, particularly where an employee has relatively small amounts of self-employment income, as the respective earnings would then be assessed over a full year. The nature of self-employment is such that it is not possible, for Revenue and PRSI purposes, to attribute self-employment income to any particular week, and earnings are assessed on a full-year basis.

Any person who feels that the assessment of their earnings, based on returns already submitted to Revenue, is inaccurate can ask for a review of their case with further details available on www.gov.ie.

Where an individual’s rate is reduced to the flat rate €203 per week and their family circumstances are that they have adult or child dependents, it may be more financially beneficial to apply for a jobseekers payment. The jobseeker’s benefit and jobseeker’s benefit for the self-employed schemes provide a social insurance contribution-based support for people who have lost work and are unable to find alternative full-time employment. If a person does not meet the qualifying conditions of the scheme they may be eligible to apply for the means tested jobseeker’s allowance scheme.  The maximum weekly rate of payment for these schemes is €203 and increases may also be paid for any qualifying adults and children.

I trust that this clarifies the position.

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