Written answers

Thursday, 2 February 2017

Department of Social Protection

Disability Allowance Eligibility

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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164. To ask the Minister for Social Protection his plans to adjust the system whereby a person (details supplied) who was self-employed is not entitled to the same benefits as a PAYE employee; and if he will make a statement on the matter. [4970/17]

Photo of Finian McGrathFinian McGrath (Dublin Bay North, Independent)
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Disability Allowance is a means tested payment for those, aged between 16 and 66, who have an injury, disease or physical or mental disability that has continued or may be expected to continue for at least one year. As a result of this disability the person must be substantially restricted in undertaking work that would otherwise be suitable for a person of his/her age, experience and qualifications.

The scheme, which is not based on social insurance contributions, is available to all those meeting the scheme conditionality including those who were formerly self-employed.

Invalidity pension is a pension payment for insured people who cannot work because of a long-term illness or disability. In Budget 2017, my colleague Minister Varadkar announced the extension of cover for invalidity pension to the self-employed on a similar basis as employees. This is in line with the commitment contained in the Programme for Government for an improved PRSI scheme for the self-employed.

For the first time, the self-employed will have access to the safety net of State income supports if they have a serious illness or injury that prevents them from working, without having to go through a means test. This is a real advance in the level of cover available to the self-employed. Given that this is a major change in the social protection system, significant adjustments to operational systems and processes will be required to support this measure.

Therefore, the measure will come into effect in December 2017 and apply to those satisfying the conditions of the scheme from that date.

I trust that this provides clarity on the issue for the Deputy.

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