Oireachtas Joint and Select Committees

Wednesday, 26 March 2014

Joint Oireachtas Committee on Education and Social Protection

Social Welfare Entitlements for Self-Employed: ISME, SEA and SFA

1:40 pm

Photo of Marie MoloneyMarie Moloney (Labour) | Oireachtas source

It is no problem. Since he and I were appointed to the committee, we have constantly raised the situation of the self-employed. We have always fought their case in this forum.

I thank the delegates for their presentations. As Deputy Butler has covered most of the ground, I have only a couple of issues I would like clarified. The portrayal we have had today of the self-employed versus employees carried a suggestion that the latter enjoy unlimited benefits. In fact, an employee will only receive jobseeker's benefit - for nine months and no more - if he or she has made contributions in the governing tax year. It is not an automatic entitlement; applicants must meet the criteria that apply. When we had representatives of the expert group before the committee we spoke at length about the percentage the self-employed would have to pay under a new system. Those witnesses suggested that self-employed people would have to contribute up to 14.5% or 15% to qualify for the same benefits as employees. The delegates might like to consider what the return would be for an extra 10% of their earnings in a year, which could suggest that the benefit is not as attractive as one might think. For a single person, for instance, the payment for nine months of jobseeker's benefit would be approximately €6,700. I agree that people who get sick must be looked after. There is not a shadow of a doubt in that regard. A person who experiences long-term illness is in big trouble, whatever else happens.

An issue I find strange and which I am constantly raising is the situation whereby even if a self-employed person is fortunate enough to access jobseeker's allowance, he or she does not receive a credit contribution for that money. Despite having paid one's self-employed stamp all along, one's pension entitlements will be eroded because in coming off self-employed and onto jobseeker's allowance, one does not get a credited contribution. That is an anomaly we must review.

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