Written answers

Tuesday, 9 June 2015

Department of Social Protection

Jobseeker's Allowance Data

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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239. To ask the Minister for Social Protection if any person who was previously self-employed, and who was refused a jobseeker's allowance by virtue of the means test, is included in her Department's official figures as an unemployed person; if her Department keeps a record of the number of persons in this category; her plans to make changes in this area; and if she will make a statement on the matter. [22044/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The Live Register is not designed to measure unemployment. It includes part-time workers (those who work up to 3 days a week), seasonal and casual workers entitled to jobseeker's benefit or jobseeker's allowance. Unemployment is measured officially by the Central Statistics Office's Quarterly National Household Survey. A person is unemployed if, in the week before the survey, they were without work and available for work within the next 2 weeks.

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 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.

Any person of working age who does not qualify for jobseeker's benefit may claim means tested jobseeker's allowance. Subject to means and other qualifying conditions, self-employed persons may claim jobseeker's allowance if their business ceases or there is reduced demand for their services.

In assessing means from self-employment, income from the previous twelve months is used as an indicator of likely future earnings. Given the variety of self-employment situations, the means assessment procedures are applied in a flexible manner to ensure that any circumstances that would be likely to lead to a significant variation, either upward or downward, in the level of a person's income from one year to the next are taken into consideration.

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.

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.

My Department does not keep a record of self-employed persons who are disallowed a jobseeker payment specifically on the basis of failing a means test and there are currently no plans to collate this data.

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