Dáil Éireann Debate, Tuesday - 12 December 2017
510. Deputy Mattie McGrath asked the Minister for Employment Affairs and Social Protection the social welfare supports and options that are in place for self-employed persons; and if she will make a statement on the matter. [52859/17]
Amharc ar fhreagraThe Government is committed to encouraging self-employment and entrepreneurship. This includes enhancing the position of the self-employed through a supportive tax regime and, very importantly, improving the level of PRSI based benefits available to self-employed people.
Self-employed people who earn €5,000 or more in a contribution year, are liable for PRSI at the class S rate of 4%, subject to a minimum annual payment of €500. This provides them with access to the following benefits: State pension (contributory), widow’s, widower’s or surviving civil partner’s pension (contributory), guardian’s payment (contributory), maternity benefit, adoptive benefit and paternity benefit.
Since March 2017, the self-employed have had access to the treatment benefit scheme which includes free eye and dental examinations, and contributions towards the cost of hearing aids. Treatment benefit entitlements were also extended from October 2017 so as to provide further dental and optical benefits.
Even more significantly, self-employed contributors are now eligible for the invalidity pension from December 2017. For the first time, this gives the self-employed access to the safety-net of State income supports if they become permanently incapable of work as a result of an illness or disability without having to go through a means test. This is a real advance in the level of cover available to the self-employed.
There are also a range of other supports available to the self-employed.
Self-employed workers with insufficient means can access means tested payments such as jobseeker’s allowance or disability allowance, in respect of periods when they cannot work because of a downturn in their business or ill health. Self-employed workers who are parenting alone can claim the One Parent Family Payment in the same manner as employees who are parenting alone.
The back to work family dividend (BTWFD) scheme aims to help families, including self-employed families, to move from social welfare into employment. It gives financial support to people with qualified children who are in or take up employment or self-employment and as a result stop claiming a jobseeker's payment or a one-parent family payment.
The back to work enterprise allowance (BTWEA) is designed to provide a monetary incentive for people who are dependent on certain social welfare payments to develop a business, while allowing them to retain a reducing proportion of their qualifying social welfare payment over two years (100% in year one and 75% in year two). In the case of jobseekers, the qualifying period required for access to the BTWEA is 12 months in receipt of a jobseeker's payment, provided a person has an underlying entitlement to jobseeker’s allowance (JA). Jobseekers who were previously self-employed, similar to PAYE workers, may access social welfare supports, including BTWEA, by establishing eligibility to JA.
The short term enterprise allowance provides immediate access to those who have lost their jobs and qualify for jobseeker’s benefit and wish to set up a business. Payment under the scheme is at the same rate and for the same duration as their entitlement to jobseeker’s benefit.
