Richard Bruton
Question:168. Deputy Richard Bruton asked the Minister for Social Protection if the short-term illness benefit can be claimed by the self-employed; and if she will make a statement on the matter. [29179/20]
View answerWednesday, 7 October 2020
Questions (168)
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.
Payment of the enhanced illness benefit in respect of COVID-19 is made to both employed and self-employed people in two very limited circumstances for a person who:
(i) is diagnosed with COVID-19, or
(ii) is a probable source of infection of COVID-19 and is self-isolating – such persons will have either been certified by their doctor or will have been contacted by the HSE (i.e. they are contact-traced or otherwise personally identified and advised by the HSE as being a probable source of infection).
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. It is provided in the interest of public health and to limit the spread of the virus.
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. Any plans to extend illness benefit to self-employed persons in other illness situations would have to be considered in the overall budgetary context.
I hope this clarifies the position for the Deputy.