Richard Bruton (Dublin North Central, Fine Gael)
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Question 1041: To ask the Minister for Social and Family Affairs if he has assessed the cost of revising disability benefit cover for self employed persons affected by a serious illness which would render them unable to continue their work for a substantial period of time; his views on introducing such a scheme; and if he will make a statement on the matter. [29860/06]

Séamus Brennan (Dublin South, Fianna Fail)
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Workers are insured under social welfare legislation as either employed or self-employed contributors. Employees and their employers generally pay contributions at PRSI Class A whereas self-employed workers generally pay contributions at PRSI Class S. The class and number of contributions paid determine the range of benefits towards which contributors can build entitlement. While employees who, together with their employers, are potentially liable for a total contribution of 14.05% under PRSI Class A, self-employed individuals pay Class S contributions at a rate of 3% and are potentially eligible for a narrower range of benefits than employees.

PRSI Class S contributors can be entitled to the following payments only: Widow's/Widower's (Contributory) Pension; Orphan's (Contributory) Allowance; Old Age (Contributory) Pension; Maternity Benefit; Adoptive Benefit, and Bereavement Grant.

When Class S was introduced for self-employed workers in 1988, coverage for short-term insurance-based schemes such as disability benefit, as well as illness or invalidity-related payments, was excluded on the grounds of cost and legal and administrative complexity.

The cost of introducing an insurance-based payment for self-employed workers with long-term illnesses would be contingent on the parameters to apply to the scheme. Questions as to whether it would be aligned to existing disability benefit or invalidity pension schemes, whether an income cap would apply, or whether the worker would have to have a permanent or temporary incapacity would have to be examined. In relation to the personal scope, the questions for consideration would include whether it would apply to all self-employed workers or only to specific groups and whether it should be on a compulsory or voluntary basis. Issues relating only to specific groups to the incidence of long-term disability among self-employed workers by comparison to employed workers would also need to be considered as would matters relating to the administration and monitoring of the scheme. A previous estimate of the full year cost in 2003 terms, ranged from €67 million, if cover was extended to invalidity pension only, to €128 million per annum if the self-employed were covered for both disability benefit and invalidity pension. Additional costs would arise on foot of improvements made to social welfare payments since.

There are no plans at present to extend cover for disability-related benefits to this group of insured workers. Any such measure would have to be considered in the wider budgetary context. Consideration would also have to be given to an appropriate increase in the rate of PRSI Class S contribution.

Self-employed workers who do not qualify for an insurance-based benefit may claim supplementary welfare allowance, which is subject to a means test.