Oireachtas Joint and Select Committees

Tuesday, 25 September 2018

Joint Oireachtas Committee on Social Protection

Pre-Budget Discussion: Minister for Employment Affairs and Social Protection

12:40 pm

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael) | Oireachtas source

I thank the Senator and will start by complimenting him. We were both elected to the Oireachtas in 2011 and he has been relentless in raising these issues ever since. That was because he had experienced at first hand the impact of the social welfare system's capacity to look after self-employed persons like him. He had not only provided a job for himself for donkey's years but also for others in County Meath. Cases such as his are the reason we have recognised and acknowledged in recent years the enterprise of the self-employed in providing employment and their invaluable contribution to the State over and above their social insurance contributions of 4% plus. That was why we needed to equalise the schemes across all categories of worker. We have gone some of the way down the road towards doing so, but we are not finished.

I cannot answer the Senator's question about specific extensions, but the report acknowledged that there could not be an opt in or an opt out. Either the contribution rate for all self-employed persons should be increased or it should not be increased at all. My opinion is that we should not increase it because the self-employed contribute enough. I have other ideas on how the Social Insurance Fund for the self-employed could be supplemented. I hope we will be able to have a further conversation on it. I intend to balance it out and ensure that, as and when the economy can sustain it in the years ahead, all of the schemes currently available to employees will also become available to the self-employed.

There are inconsistencies in the working family payment scheme. At the end of the day, it is income. We only give it to persons who are on a low income or who only work 19 hours every fortnight because they cannot survive on the money they are earning. The working family payment supplements their income based on their working hours and number of children. Therefore, it is household income and Meath County Council has a right to evaluate it as income when working out the differential rate. The inconsistency lies in the fact that the same is not done in every county council area. Applying it equally one way or the other would be fairer. I will make inquiries in that regard.

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