Written answers

Thursday, 19 May 2016

Department of Social Protection

Farm Assist Scheme Administration

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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124. To ask the Minister for Social Protection if he will award credits to all persons who were in receipt of farm assist prior to the change of rules that allows persons on farm assist to make self-employed pay related social insurance contributions, to ensure that they receive equal treatment with those on jobseekers' allowance; and if he will make a statement on the matter. [10967/16]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The farm assist scheme was introduced in 1999 to provide income support for low income farmers. It replaced the former smallholders’ unemployment assistance payment. In line with the then existing arrangements for unemployment assistance (including smallholders) and pre-retirement allowance, the income of farm assist recipients was exempt from class S PRSI for self-employed workers. Recipients of farm assist who had previously paid Class S social insurance had the option of paying voluntary contributions to maintain their social insurance record, provided they satisfied the qualifying conditions.

Since 1st January 2007, the exemption from class S PRSI has been removed and those receiving jobseeker’s allowance and farm assist are subject to Class S PRSI as self-employed contributors on their self-employed income, provided their annual income is €5,000 or more.

Currently PRSI credited contributions (credits) are only awarded to former employees, to cover gaps in social insurance where they are not in a position to pay PRSI such as during periods of unemployment, illness, etc. Self-employed workers do not qualify for credits.

Any proposal to award retrospective credits to farm assist recipients would have to be considered in the context of access to credits for all other categories of the self-employed and in the wider Budgetary context.

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