Stephen Donnelly (Wicklow, Independent)
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Question 266: To ask the Minister for Social Protection if she will provide the entitlements and procedures applying to self-employed persons whose business has collapsed and who need social assistance; the difference between these entitlements and those applying to former PAYE workers who are now unemployed; if she will consider bringing these entitlements into parity; if she is considering any other changes in policy in this area; if there are any supports available for a small business that is struggling and on the brink of collapse, in order to help it avoid collapse.; and if she will make a statement on the matter. [35595/11]

Joan Burton (Dublin West, Labour)
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Self-employed persons are liable for PRSI at the Class S rate of 4% which entitles them to access long-term benefits such as State pension (contributory) and widow's, widower's or surviving civil partner's pension (contributory). Ordinary employees who have access to the full range of social insurance benefits, including jobseeker's benefit, pay Class A PRSI at the rate of 4%. In addition, their employers make a PRSI contribution of 10.75% in respect of their employees, resulting in the payment of a combined 14.75% rate per employee under full-rate PRSI Class A. (For employees earning less than €356 per week, the rate of employer's PRSI is 4.25%).

In this context it may be noted that self-employed workers generally achieve better value for money by paying social insurance compared to employees. In terms of benefits, the 2005 Actuarial Review of the Social Insurance Fund found that the self-employed contributor can expect to receive over 10 times what he contributes to the social insurance fund compared to the employee who only gets 3 times what he and his employer contribute – despite the fact that the range of benefits available to employees is greater.

Any changes to the PRSI system in order to provide access to short-term benefits such as jobseeker's benefit would have significant financial implications and would have to be considered in the context of a much more significant rise in the rate of contribution payable. I have established the Advisory Group on Tax and Social Welfare earlier this year to meet the commitment made in the Programme for Government. The Advisory Group will, inter alia, examine and report on issues involved in providing social insurance cover for self-employed persons in order to establish whether or not such cover is technically feasible and financially sustainable.

The Deputy should be aware that self-employed persons may establish eligibility to assistance-based payments including payments such as jobseeker's allowance. In general, in assessment of means account will be taken of the level of earnings in the last twelve months in determining their expected income for the following year. In the current climate account is taken of the downward trend in the economy. The provision of supports to small business is a matter for my colleague the Minister for Jobs, Enterprise and Innovation.