Written answers

Tuesday, 20 February 2018

Department of Employment Affairs and Social Protection

Social Welfare Benefits

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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577. To ask the Minister for Employment Affairs and Social Protection her plans to address issues of contributory entitlements such as illness benefit or other similar payments in which the persons qualify for a payment approximately half of that applicable to an old age pensioner; and if she will make a statement on the matter. [8813/18]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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For certain social insurance schemes, namely illness benefit, jobseeker’s benefit and health and safety benefit, graduated rates apply where the average weekly earnings are less than €300 per week.

The rate of payment depends on the person’s level of earnings in the governing PRSI contribution year. For illness benefit claims made in 2018, the governing contribution year is 2016. Where the average weekly earnings are €300 or more the personal rate of payment is €193 weekly (this will increase to €198 per week, from the 26thof March 2018).

The table outlines the current graduated rates payable. These rates will all proportionately increase as a result of Budget 2018 from the last week of March 2018.

Average weekly earnings Personal rate
Less than €150.00€86.70
€150.00 and less than €220.00€124.60
€220.00 and less than €300.00€151.20
€300.00 or more€193.00

Graduated rates were introduced in 1993 with the extension of full social insurance cover to part-time workers from April 1991. In the absence of graduated rates, a situation would exist whereby part-time workers on low incomes would have access to weekly social welfare payments in excess of their income from employment. For instance, someone earning €38 a week or more is liable for PRSI Class A contributions. Given that the maximum personal rate of these schemes is currently €193 a week, without graduated rates, the social welfare benefits available would be more than five times the level of income from employment for some people.

It should be noted that a recipient of a graduated rate of illness benefit with limited means can claim Supplementary Welfare Allowance (SWA) as a “top-up” payment if the rate of illness benefit is below the maximum rate of SWA, subject to meeting the scheme criteria. Application may be made to the Community Welfare Services at the local Intreo Centre.

If a recipient of a graduated rate of illness benefit is medically assessed as being incapable of work for the next 12 months and satisfies the PRSI contribution requirements, he or she can apply for the Invalidity Pension scheme, which has a higher rate of payment than Illness Benefit.

I trust this clarifies the matter for the Deputy.

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