Dáil Éireann Debate, Tuesday - 6 February 2018
590. Deputy Tom Neville asked the Minister for Employment Affairs and Social Protection her plans to review the waiting period of six days for illness benefit; the estimated day-by-day reduction costs; and if she will make a statement on the matter. [5601/18]
Amharc ar fhreagraIllness benefit is a short term payment made to insured people who are unable to work due to illness. The payment is funded by the Social Insurance Fund (SIF) through the payment of PRSI contributions by workers and employers.
Normally, payment of illness benefit begins from the seventh day of the illness; no payment is made for the first six days, known as “waiting days”. Waiting days have been a long standing feature of social insurance schemes and are a feature of similar social security schemes in many other countries.
The SIF operates on a “pay as you go” basis, with the Exchequer acting as residual financier of the fund when there is a shortfall between contributions received and benefits paid. The fund is central to Ireland’s system of social protection and there is a fundamental requirement that it should be protected for current and future generations. In order to ensure the sustainability of the Fund, the number of waiting days was increased in 2014 from three to six. This increase in waiting days was a relatively modest adjustment and many employees still receive their salaries when out sick where their employers have occupational sick pay arrangements in place. Furthermore, people who need financial support are not left without such support during waiting days. A person who has no other income may claim supplementary welfare allowance in respect of the days in question.
I have no plans at present to change the number of waiting days for illness benefit. Such a measure would have budgetary implications and would need to be taken into consideration in the context of overall budgetary decisions. When the measure was introduced in 2014, the then projected full-year annual savings of extending the number of “waiting days” for Illness Benefit from three to six days was €22 million, from three to five days €15 million and from 3 to 4 days just under €8 million.
I hope this clarifies the matter for the Deputy.
