Written answers

Tuesday, 10 July 2018

Department of Employment Affairs and Social Protection

Social Welfare Benefits Eligibility

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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872. To ask the Minister for Employment Affairs and Social Protection the way in which a person working full-time and paying PRSI on a widow's pension (contributory) is not entitled to illness benefit when sick; and if she will make a statement on the matter. [30500/18]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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There are a number of basic principles which underpin the Irish social insurance system. Firstly there is the contributory principle. Under this principle there is a direct link between the PRSI contributions that a person has paid and entitlement to a varying range of benefits and pensions. Where a person has sufficient PRSI contributions, then benefits and pensions may be paid as of right, where a particular contingency arises and without a means test.

Secondly there is the solidarity principle. Under this principle the benefits and pensions that are paid are not directly related to the amount of PRSI contributions paid by insured persons. PRSI contribution income is instead redistributed to support contributors who are more vulnerable.

In addition, there is a general principle of one person, one payment, which applies across the social welfare system. Given the contingency-based nature of this system, it can happen that a person may experience more than one contingency at the same time and he or she can receive only one of those payments. This principle is common to social security systems across the world.

There were a limited number of exceptions in the social insurance system to the general principle of one person, one payment. These exceptions usually applied in the context of short-term benefits. For instance, recipients of One-Parent Family Payment, Widows and Widowers Pensioners could, until recent years, also receive short-term social insurance benefits, such as Illness Benefit and Jobseeker’s Benefit at half-rate at the same time. These overlapping payment arrangements were introduced in the early 1950s when the social insurance system was first established, at a time when there were only 10 individual social welfare payments and when rates were significantly lower in real terms than they are now. However, the social welfare system has been significantly developed over the intervening period, with the result that the number of possible combinations of concurrent contingencies has increased greatly.

The concurrent payment of half-rate Illness Benefit and Jobseeker’s Benefit in addition to One-Parent Family Payment, and Widows and Widowers Pensions was discontinued from January 2012, in the context of the Government’s commitments to maintain existing core rates of primary payments for social welfare recipients. There are exceptions to this as in a case where a reduced Widows Pension is in payment and paid at a rate lower than the Illness Benefit Rate. In such circumstances Illness Benefit may be paid to ensure that the aggregate payment will equate with the maximum rate of Illness Benefit appropriate to the person’s circumstances.

To change the underlying principle of entitlement to only one payment at any one time could involve significant and unsustainable additional expenditure in the long-term and it is not intended to depart from this principle.

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