Written answers

Thursday, 16 February 2017

Department of Social Protection

Social Insurance

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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180. To ask the Minister for Social Protection the cost of extending social protection supports to the self-employed and permitting such persons to opt into the existing class A structure, paying the rate corresponding to their income level; and if he will make a statement on the matter. [8027/17]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Government is committed to encouraging self-employment and entrepreneurship. This includes enhancing the position of the self-employed through a supportive tax regime and, very importantly, improving the level of PRSI based benefits available to self-employed workers.

This has been one of my key priorities since becoming Minister in this Department. On Budget Day, I was pleased to announce important measures which will directly benefit the self-employed.

From March 2017, the self-employed will have access to the treatment benefit scheme which includes free eye and dental examinations, and contributions towards the cost of hearings aids. Treatment benefit entitlements will also be extended from October 2017 so as to provide further dental and optical benefits.

Even more significantly, self-employed contributors will be eligible for the Invalidity Pension from December 2017. The measure is expected to benefit approximately 1,400 people in 2017 at a cost of €1.5 million while the cost for 2018 will be a little over €23 million with 2,500 people benefitting from the scheme. For the first time, this will give the self-employed access to the safety net of State income supports if they become permanently incapable of work as a result of an illness or disability without having to go through a means test. This is a real advance in the level of cover available to the self-employed.

I plan to continue extending cover for the self-employed to other benefits on a phased basis in future Budgets. In 2017, my Department is examining the costs and financing of the extension of social insurance to cover new risks and contingencies, including developing proposals on a form of jobseeker’s benefit where a person's business fails or they can no longer continue working in their profession or trade. This examination will include the level of appropriate additional contribution required to fund additional benefits. The cost of extended social insurance cover for the self-employed will also be addressed in the Actuarial Review of the Social Insurance Fund as at 31 December 2015 which is currently underway. This report will be available later in 2017.

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