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Social Welfare Eligibility

Dáil Éireann Debate, Thursday - 8 September 2022

Thursday, 8 September 2022

Ceisteanna (1060, 1061)

John Lahart

Ceist:

1060. Deputy John Lahart asked the Minister for Social Protection the reason sole traders who are self-employed have not received continuing support in the post-Covid period, given that an employee who has been made redundant, regardless of the amount of redundancy payment received, will automatically receive nine months' jobseeker’s benefit prior to being transferred onto a means tested benefit and in view of the fact that that jobseeker's benefit is available for the self-employed but in order to qualify a person must not be engaged in self-employment; and if she will make a statement on the matter. [42113/22]

Amharc ar fhreagra

John Lahart

Ceist:

1061. Deputy John Lahart asked the Minister for Social Protection the reason that sole traders in the self-employment sector are not treated in the same manner as persons who are ex-employees; the reason that existing sole traders are not offered assistance in the same way that support is offered to new self-employed persons; and if she will make a statement on the matter. [42115/22]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 1060 and 1061 together.

My Department provides a range of income supports for both employees and self-employed people, while recognising the differences in these types of employment. 

Employees who are fully unemployed or working up to 3 days per week may receive Jobseeker's Benefit provided that they satisfy the qualifying conditions, including having the necessary social insurance contributions.  If their employer has reduced the employee's working days, they may be entitled to Short Time Work Support depending on the circumstances.

A person who has been made redundant and is aged under 55 may be disqualified from receiving Jobseeker's Benefit for a period of up to 9 weeks from the last date of employment if they have received or are entitled to a payment in excess of €50,000 under the Redundancy Payments Acts or under an agreement with his/her employer.  After the period of disqualification the jobseeker must satisfy the qualifying conditions in order to receive Jobseeker's Benefit; there is no automatic entitlement to the benefit.  After a person has exhausted their Jobseeker's Benefit entitlement, they may qualify for the means tested Jobseeker's Allowance scheme.

Jobseeker's Benefit Self Employed is a social insurance contribution based income support payment for qualifying self-employed people, which was introduced in November 2019.  Many of the features of this benefit scheme are similar to Jobseeker's Benefit.  These include the duration and the rates of payment, including increases for adult and child dependents.  Other fundamental conditions that apply to both schemes are that the person must be available for and genuinely seeking full-time work.  Similarly, a self-employed person can work for up to 3 days as employee in insurable employment and retain their entitlement. 

Not all features of both schemes are the same which reflects the differences that exist between the nature of self-employment and working as an employee.  To qualify for payment for a self-employed person, a claimant must meet the conditions for the scheme including the condition of not being engaged in self-employment.  Where a self-employed person, including those who may be operating at reduced levels, does not meet the conditions for Jobseeker's Benefit Self Employed they may receive support under the means tested Jobseeker's Allowance provided that they satisfy the conditions of that scheme.  The Department of Enterprise, Trade and Employment provides a range of tailored supports for businesses.

The Back to Work Enterprise Allowance scheme offers support for people who are long-term unemployed, including those who may previously have been self-employed, and who are interested in self-employment through the establishment of a new business as a route to entering the labour market.  Alternatively, a person may be eligible for the Short Term Enterprise Allowance which is paid instead of the Jobseeker’s Benefit or Jobseeker’s Benefit Self-Employed payment where a person sets up a new business.

I trust that this clarifies the position.

Question No. 1061 answered with Question No. 1060.
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