Written answers

Wednesday, 26 June 2013

Department of Social Protection

Social Welfare Eligibility

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour)
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140. To ask the Minister for Social Protection the way any proposed changes to the treatment of the self employed for PRSI contributions/benefits will apply to a person (details supplied) in County Cork; when the proposed legislation will be introduced; and if she will make a statement on the matter. [30964/13]

Photo of Joan BurtonJoan 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).

In 2011 I established the Advisory Group on Tax and Social Welfare to meet the commitment made in the Programme for Government. The Advisory Group is charged with, inter alia, examining and reporting 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 Advisory Group's overall method of working is based on producing modular reports on the priority areas identified in the Terms of Reference. Where possible, the aim is to provide recommendations that can be acted upon in time for the annual budget, estimates and legislative cycle and to allow the Government to best address its commitments under the EU-IMF Programme of Financial Support. The Groups report on the issues involved in providing social insurance cover for self-employed persons so as to establish whether or not such cover is technically feasible and financially sustainable was submitted to me in May 2013.

Any proposal to change the treatment of the self-employed for PRSI contributions/benefits arising from the Group's report could only be considered in a Budgetary context.

Self-employed persons whose businesses fail or suffer from reduced demand may, however, access social welfare support by establishing entitlement to assistance-based payments such as jobseeker's allowance. They can apply for the means-tested jobseeker's allowance if their business ceases or if they are on low income as a result of a downturn in demand for their services. In general, their means will take account of the level of earnings in the last twelve months in determining their expected income for the following year and, in the current climate, account is taken of the downward trend in the economy. As in the case of a non-self-employed claimant for jobseeker's allowance, the means of husband/wife, civil partner or co-habitant will be taken into account in deciding on entitlement to a payment.

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