Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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367. To ask the Minister for Social Protection the status of extending social protection entitlements to self-employed persons; if there is a timeframe on this issue; and if he will make a statement on the matter. [20658/16]

Leo Varadkar (Dublin West, Fine Gael)
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Providing a supportive environment for enterprise and employment is fundamental to achieving the partnerships aim of job creation.

In particular, the role of entrepreneurs and the self-employed will be central to this ambition. The new programme agreed with our partners in Government contains a commitment to introduce an improved PRSI scheme for the self-employed. In addition, we will also ensure that the Earned Income Tax Credit available to the self-employed will match that available to employees, over a number of budgets. This process commenced in Budget 2016 with the introduction of a €550 tax credit for the self-employed.

I want to ensure that appropriate sustainable supports are available to the self-employed in the event of certain contingencies arising. The self-employed already have access to State pension (contributory), widow’s, widower’s or surviving civil partner’s pension (contributory), maternity benefit and adoptive benefit on the same basis as employees. They will gain access to the new paternity benefit this September and legislation is before the House at the moment on the matter.

However, unlike the position with employees, they are not covered for certain benefit payments, such as long term illnesses or disability and may not avail of treatment benefit.

The former Advisory Group on Tax and Social Welfare published a report in 2013 which examined the options for extensions of cover to the self-employed. The Group found that extending social insurance for the self-employed was warranted in cases related to long term sickness or injuries. In this regard the Group recommended that the rate of contribution for class S should be increased by at least 1.5 percentage points, payable on a compulsory basis only.

Funding the extension of social insurance coverage for the self-employed will also have to take account of the most recent Actuarial review of the Social Insurance Fund published in 2012. The review found that, in the case of the self-employed (with earnings equivalent to national average earnings), a 15% contribution rate would be needed to provide the core full-rate State pension (contributory). This compares very favourably with the 4% rate currently paid by the self-employed. The review also showed that the self-employed at all income levels got better value for money for their contribution in relation to the State pension than employees generally.

I intend to extend, over a period of time, the range of benefits which the self–employed can access through the social insurance system, with particular reference to providing access to benefits for long-term illness/incapacity and treatment benefits. My Department is currently examining the costs and financing of such an extension of benefits as well as the phasing in of access to the benefits. This examination will have to include the level of appropriate additional contribution the self-employed should make for more benefits.

I look forward to making progress on this issue regarding specific proposals, as well as providing a timeframe for implementation later this year.