Written answers

Tuesday, 27 March 2018

Department of Employment Affairs and Social Protection

Social Insurance Fund Review

Photo of James LawlessJames Lawless (Kildare North, Fianna Fail)
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578. To ask the Minister for Employment Affairs and Social Protection if a system of illness benefit for self-employed persons is now available; the steps that have been taken to implement same; and if she will make a statement on the matter. [13556/18]

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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579. To ask the Minister for Employment Affairs and Social Protection when the proposed illness benefit for self-employed persons will be introduced; the reason this has been delayed; if impediments to its introduction have been identified; the funding that has been provided for the scheme in 2018; the qualifying criteria; and if she will make a statement on the matter. [13564/18]

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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590. To ask the Minister for Employment Affairs and Social Protection the way in which a person that is self-employed may avail of illness benefit; the amount of benefit a person that is self employed may claim; the duration they may claim for; and if she will make a statement on the matter. [13821/18]

Photo of Finian McGrathFinian McGrath (Dublin Bay North, Independent)
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I propose to take Questions Nos. 578, 579 and 590 together.

Self-employed persons are liable for PRSI at the Class S rate of 4% which covers them for access to long-term benefits such as State pension (contributory) and widow's, widower's or surviving civil partner's pension (contributory) as well as some treatment benefits, maternity and paternity benefit, adoptive benefit and guardians payment (contributory). Class S contributions do not provide access to short-term social insurance benefits such as illness benefit. However, the means tested supplementary welfare allowance scheme may be available to those who are experiencing financial difficulty. Self-employed contributors have been covered for invalidity pension since December 2017. This gives the self-employed access to a safety-net of income supports if they become permanently incapable of work as a result of a long-term illness or disability without a means test.

I have already indicated the Government’s intention to examine the further extension of benefits to self-employed people. In doing this, it will take account of results of the 2017 survey of self-employed workers, which indicated that self-employed people are open to paying a higher rate of social insurance in return for additional benefits, and the actuarial review of the social insurance fund which was undertaken by KPMG and published last year.

The actuarial review found that the combined cost of introducing the invalidity, illness, jobseeker’s and carer’s benefits for class S contributions is estimated to be €118 million in 2018, rising to €223 million in 2020. The review indicated that PRSI rates for the self-employed would need to increase from the current level of 4% to 7.8% to ensure a revenue neutral outcome.

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