Richard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

As the Deputy is aware, responsibility for the illness benefit scheme rests with the Minister for Social Protection. The benefit is paid to employees who are unable to work due to illness and who meet certain qualifying conditions.

Changes to the illness benefit scheme announced in budget 2014 mean that the number of days that a person must wait before receiving illness benefit from the Department of Social Protection is being increased from three days to six days. This change will come into effect from 6 January 2014. There will be no reduction in the basic rate of illness benefit.

It is of course open to business to offer sick pay cover which exceeds that provided by the Department of Social Protection, and some employers do. It is a matter for employers and workers in these companies as to how they will alter cover in their schemes in response to this change.

Social Protection expenditure remains the largest single area of public spending, accounting for almost 40% of gross current expenditure. As the Minister for Public Expenditure and Reform pointed out in his budget speech, this area of expenditure cannot be excluded from savings in the context of the need to balance public expenditure.

The change being introduced to the illness benefit scheme represents a small adjustment that was considered appropriate to contribute to the social welfare savings that have to be found in 2014. The change must also be seen in the context of a reforming budget that included a €500 million stimulus package to support enterprise growth and job creation. This package includes a capital stimulus plan, the retention of the 9% VAT rate for the hospitality sector, the introduction of a home renovations tax incentive, a new start your own business scheme for the unemployed, and an increase in the cash receipts threshold for VAT which will improve cashflow for businesses.

The pro-jobs measures in budget 2014 will allow us to continue to deliver the Action Plan for Jobs process. From my own Department’s perspective, Enterprise Ireland and IDA Ireland are targeting the creation of a total of 24,000 gross new jobs during 2014.

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