Written answers

Wednesday, 20 July 2016

Department of Social Protection

Social Insurance

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
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239. To ask the Minister for Social Protection the progress that has been made on implementing the findings of the 2013 advisory group recommendations on extending social insurance support for the self-employed; and if he will make a statement on the matter. [23130/16]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The new partnership Government aims to create an additional 200,000 jobs by 2010, including 135,000 outside of Dublin. In particular, the role of entrepreneurs and the self-employed will be central to this ambition. They are a diverse group and include farmers, tradesmen, small business owners, professionals, freelancers and consultants, some work part time, others work every waking hour every day.

Core to the provision of a more supportive environment for the self-employed is the commitment in the new programme to introduce an improved PRSI scheme for them. 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.

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), guardians payment (contributory), maternity benefit and adoptive benefit on the same basis as employees. They will also gain access to the new paternity benefit which will be introduced later this year.

However, unlike the position with employees, they are not covered for certain contingencies such as long-term illnesses or disability. I have already indicated that extending social insurance coverage to the self-employed is a personal priority for me as Minister. I intend to extend, over a period of time, the range of benefits which the self–employed can access through social insurance. I want to start by providing access to benefits for long-term illness/incapacity and to treatment benefits. So, a self-employed person injured or incapacitated during the course of their work or on the way to or from it, will have a stronger safety net to protect them.

The former Advisory Group on Tax and Social Welfare published a report in 2013 which examined the options for extension of cover to the self-employed. The Group recommended that the rate of contribution for Class S self-employed should be increased and paid on a compulsory basis in order to pay for cover for long-term illnesses.

The Group concluded that “extension on a voluntary basis, through either an “opt in” or “opt out” basis, could lead to the selection of bad risks and would undermine the social solidarity and contributory principles that underline the social insurance system.”

My Department is currently examining the costs and financing an extension of benefits as well as the phasing in of access to the benefits. This examination includes a survey of a random sample of the self-employed population who rely on Class S social insurance benefits.

The survey is being carried out by my Department to get their views on priorities for increasing access to social insurance entitlements and the level of contribution the self-employed would be willing to make for more benefits.

The result from this survey will help inform and shape the development of future social insurance policy for the self-employed. Therefore, I encourage any self-employed individuals invited to participate to make every effort to do so.

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