Oireachtas Joint and Select Committees

Wednesday, 20 November 2013

Joint Oireachtas Committee on Education and Social Protection

Social Welfare Benefits: Discussion with Department of Social Protection

1:10 pm

Photo of Marie MoloneyMarie Moloney (Labour)
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That is good. It is regrettable that, as announced in the recent budget, PRSI contributions are to increase from January next.

Ms Kennedy spoke about the means-tested jobseeker's allowances if a person's business ceases. While I accept that is happening, I have come across cases of people who were self-employed, but did not have accounts because the business went so bad they could not afford the accountant. They have no official accounts for social welfare purposes and it is causing many problems. A person who worked in 2012 and is signing on in 2013 would not have accounts done until the end of the year and therefore it is not possible to provide accounts for 2012.

I have come across cases where people who worked in 2012 were having their payments reduced by the Department owing to what is termed a "projected income" they could have had. It seems impossible to get across the message to the Department of Social Protection that the work the person had in 2012 is gone. The Department suggesting the person could possibly make a particular amount in 2013 is a catch 22. We need to address that issue of projected income.

The actuarial review took place between 2000 and 2005, which was probably the height of the boom. Why must the self-employed pay 15% to 16% when PAYE workers pay only 14.5%? Why is it necessary for the self-employed to pay 1.5% more than PAYE workers to get the same benefits?

I welcome that the group recommended the extension of long-term sickness benefits on a compulsory basis and that the rate of contribution for Class S should be increased by at least 1.5 percentage points. That is very important because many people have no income when they get sick.