Denis Naughten (Roscommon-South Leitrim, Independent)
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172. To ask the Minister for Social Protection her plans to provide for access to illness benefit payments by the self-employed; and if she will make a statement on the matter. [9232/15]

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 maternity benefit, adoptive benefit, guardian’s payment and 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 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 8.50%).

In September 2013, I published the report of the Advisory Group on Tax and Social Welfare on Extending Social Insurance Coverage for the self-employed. The Group was asked to examine and report on issues involved in extending social insurance coverage for self-employed people in order to establish whether or not such cover is technically feasible and financially sustainable, with the requirement that any proposals for change must be cost neutral.

In determining that social insurance for the self-employed should cover contingencies relating to ill health or incapacity, the Advisory Group was cognisant of the fact that some self-employed people could continue to obtain an income while suffering an illness whereas an employee, while experiencing a similar illness, might not. Furthermore, given the control difficulties that might arise with a self-employed person self-certifying their non-participation in their business, the Group considered that it would not be appropriate to extend social insurance to the self-employed for short-term illness income supports, such as Illness Benefit or Occupational Injuries Benefit.

The Group found that extending social insurance for the self-employed was warranted in cases related to long-term sickness or injuries. To this end, the Group recommended that class S benefits should be extended to provide cover for people who are permanently incapable of work, because of a long-term illness or incapacity, through the invalidity pension and the partial capacity benefit schemes. The Group further recommended that the extension of social insurance in this regard should be on a compulsory basis and that the rate of contribution for class S should be increased by at least 1.5 percentage points.

This recommendation will require further consideration in conjunction with the findings of the most recent Actuarial Review of the Social Insurance Fund which indicated that the self-employed achieve better value for money compared to the employed when the comparison includes both employer and employee contributions in respect of the employed person.

My colleagues in Government and I will continue to reflect on the findings of the Advisory Group on this issue and will further consider the recommendations contained in the report taking into account future developments in terms of the budgetary and fiscal situation.