Dáil Éireann Debate, Tuesday - 15 July 2014
72. Deputy Patrick O'Donovan asked the Tánaiste and Minister for Social Protection if she will provide an update on any proposals she may have to reform the current system in order that provision may be made for social welfare payments for the self-employed; and if she will make a statement on the matter. [30812/14]
Amharc ar fhreagraSelf-employed persons pay PRSI at the Class S rate of 4%. This entitles them to access valuable long-term benefits including the State pension (contributory), widow’s, widower’s and surviving civil partner’s contributory pension and maternity benefit. The self-employed with insufficient means can also access social assistance payments such as jobseekers allowance and disability allowance subject to satisfying other qualifying criteria.The Advisory Group on Tax and Social Welfare found that the current system of means tested jobseeker’s allowance payments adequately provides cover to self-employed people for the risks associated with unemployment. The Group was not convinced that there was a need for the extension of social insurance for the self-employed to provide cover for jobseeker’s benefit. The Group also found that extending social insurance for the self-employed was warranted in cases related to long term sickness or injuries. To this end, the Group recommended that Class S benefits should be extended to provide cover for people who are permanently incapable of work, because of a long-term illness or incapacity, through the invalidity pension and the partial capacity benefit schemes. In this regard the Group recommended that the rate of contribution for Class S should be increased by at least 1.5 percentage points, payable on a compulsory basis only.
This recommendation will be considered in conjunction with the Actuarial Review of the Social Insurance Fund 2010 finding that the self-employed achieve better value for money compared to employed workers. My colleagues in Government and I will reflect on this issue taking into account future developments in terms of the budgetary and fiscal situation.
