Written answers

Wednesday, 26 July 2017

Department of Employment Affairs and Social Protection

Social Insurance Fund

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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1589. To ask the Minister for Employment Affairs and Social Protection her plans to further extend benefits available to the self-employed; and if she will make a statement on the matter. [36598/17]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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The Programme for a Partnership Government contains a commitment “to introduce a PRSI scheme for the self-employed and provide a supportive tax regime for entrepreneurs and the self-employed”. Significant progress was made on this commitment in Budget 2017. Self-employed contributors now have access to treatment benefits since last March and, from December next will have access to invalidity pension. This is a real and progressive advance in the provision of social protection to the self-employed.

My Department is currently examining 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 how such additional benefits should be financed.

A major input to this examination will be the outcome of the Actuarial Review of Social Insurance Fund which is currently being finalised by independent consultants. The Review generally will project the income and expenditure of the Fund over a 55 year period, taking into account policy, economic and demographic changes since the previous review was undertaken. The Review is also examining the potential costs in future years of extending cover for a range of benefits, including jobseeker’s benefit to self-employed contributors. This examination will include the projected PRSI contribution rates which would be required to extend such cover on a revenue neutral basis, including the already announced extension of cover for invalidity pension. It is planned to publish the completed review in the third quarter of 2017.

The findings of the Review will play an important role in informing the overall debate on policy developments in relation to the Social Insurance Fund in the years ahead including the financial sustainability of the Fund given the expected demographic challenges and consideration of extending the scope of benefits for workers generally, including the self-employed.

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