Written answers

Thursday, 1 July 2021

Department of Employment Affairs and Social Protection

Social Welfare Schemes

Photo of Seán HaugheySeán Haughey (Dublin Bay North, Fianna Fail)
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291. To ask the Minister for Employment Affairs and Social Protection the reason applicants for the new transitional payment for persons aged 65 years are deemed ineligible to receive this benefit and considered to be self-employed and engaged in insurable self-employment if they are paying class S contributions arising from sole income from a self-funded private pension scheme; and if she will make a statement on the matter. [35531/21]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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311. To ask the Minister for Employment Affairs and Social Protection the extent to which satisfactory provision has been made for those retiring at 65 years of age; and if she will make a statement on the matter. [35718/21]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 291 and 311 together.

The Benefit Payment for 65 Year olds is provided under the Jobseeker’s Benefit and Jobseeker’s Benefit (Self-Employed) social insurance schemes in accordance with the relevant provisions of the Social Welfare Consolidation Act 2005 as amended. The introduction of the payment fulfils a key commitment in the Programme for Government to provide a benefit payment for people who are aged 65 and who are required to or who chose to retire early, but do not qualify for the State Pension until they are aged 66.

The payment is made to people aged between 65 and 66 years who satisfy the qualifying scheme conditions and who have ceased employment or self-employment. Those who qualify for the payment will not be required to sign on, partake in any activation measures or be available for and genuinely seeking work which is generally the case for recipients of jobseeker payments.

Applicants must also satisfy the PRSI conditionality for the scheme which includes having the required contributions in the Governing Contribution Year, which is the second last complete tax year. For example, for a claim in 2021, the second last complete tax year is 2019. This condition demonstrates a recent attachment to the workforce. The reason for the requirement to have paid contributions in the manner set out in legislation is to demonstrate a recent attachment to the workforce. Those retiring at age 65 should meet the required PRSI conditionality having recently left employment.

Self-employed contributors pay PRSI on a wide variety of self-employment income. These contributions help to ensure that individuals qualify for valuable social welfare benefits, including pensions. The qualifying conditions for Jobseekers Benefit (Self-Employed) include the requirement that a person has completely ceased self-employment. For that reason, individuals who continue to pay Class S PRSI on a variety of income sources re not regarded as having ceased self-employment; they continue to pay Class S PRSI and are to be regarded as being in insurable self-employment.

The issue regarding Class S PRSI contributions arising solely from personal pensions has been raised with my Department and the matter is under consideration.

I trust that this clarifies the position for the Deputy.

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
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292. To ask the Minister for Employment Affairs and Social Protection the annual spend on the treatment benefit scheme in 2000, 2005, 2010, 2015 and 2020; and if she will make a statement on the matter. [35598/21]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The table below shows expenditure for the Treatment Benefit Schemes in each of the years 2000, 2005, 2010, 2015 and 2020 as requested by the Deputy:

- 2000 2005 2010 2015 2020
- €000 €000 €000 €000 €000
Dental Benefit 45,402 49,612 34,215 16,619 44,309
Optical Benefit 10,885 11,688 9,989 6,808 35,256
Medical & Surgical Devices Benefit 1,512 4,197 7,269 6,466 11,755
Total Treatment Benefits 57,799 65,497 51,473 29,893 91,320

The figures for 2020 are provisional and are subject to audit by the Comptroller and Auditor General.

The Deputy may wish to note that the Treatment Benefit schemes catered for examinations and treatments in the years 2000, 2005, 2010 and 2020. In 2015, only examinations were covered by the scheme. In addition, by 2020, the scheme catered for a broader range of individuals as the scheme was extended to self-employed workers in Budget 2017.

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