John McGuinness (Carlow-Kilkenny, Fianna Fail)
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56. To ask the Minister for Social Protection if she has considered extending social protection supports, including jobseeker's benefit and illness benefit, to self-employed persons; and if she will make a statement on the matter. [19251/15]

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 long-term benefits such as State pension (contributory) and widow's, widower's or surviving civil partner's pension (contributory) as well as maternity benefit, adoptive benefit and guardians payment (contributory).

Self-employed workers may also access social welfare supports by establishing eligibility to assistance-based payments such as jobseeker’s allowance and disability allowance. In the case of 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 September 2013, the report of the Advisory Group on Tax and Social Welfare on Extending Social Insurance Coverage for the self-employed was published. 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.

The Group found that the current system of means tested jobseeker’s allowance payments adequately provides cover to self-employed people for the risks associated with unemployment. In this context, the Group noted that almost 9 out of every 10 self-employed people who claimed the means tested jobseeker’s allowance during the three-year period from 2009 to 2011 received payment. Consequently, the Group was not convinced that there was a need for the extension of social insurance for the self-employed to provide cover for jobseeker’s benefit.

The Advisory Group also considered that it would not be appropriate to extend social insurance to the self-employed for short-term illness supports, such as illness benefit. In making this determination the Advisory Group acknowledged that some self-employed people could continue to obtain an income while suffering an illness whereas an employee, experiencing a similar illness, might not. Furthermore, control difficulties might arise with a self-employed person self-certifying their non-participation in their business. On the other hand, the Group found that extending social insurance for the self-employed is warranted for cases related to long term sickness or injuries and recommended that Class S benefits should include the invalidity pension and the partial capacity benefit for an additional mandatory contribution.

Any decision to change these provisions in relation to self-employed persons would be a matter for Government to consider in a Budgetary context.