Pauline Tully (Cavan-Monaghan, Sinn Fein)
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270. To ask the Minister for Employment Affairs and Social Protection the reason that the wage subsidy scheme is not available to disabled people who are self-employed; if she will consider extending the wage subsidy scheme to disabled people who are self-employed; and if she will make a statement on the matter. [52546/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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People with a disability who are self-employed, or considering self-employment, cannot avail of the Wage Subsidy Scheme (WSS). This provision also applies to directors of limited companies who work as paid employees in their company.

The Wage Subsidy Scheme is an employment support to private sector employers. The objective of the scheme is to encourage employers to employ people with disabilities, who they may not otherwise consider due to a potential productivity loss. The incentive is intended to encourage employers to take on new employees. The scheme provides financial incentives to employers to hire new staff with a disability for between 21 and 39 subsidised hours per week under a contract of employment. The employee must be subject to and have the same rights as per the conditions of employment as any of their other employees. These conditions include the payment of Class A PRSI contributions.

It should be noted that my department provides a wide range of other employment-related supports for persons with disabilities seeking to enter self-employment.

- Disability Allowance and Blind Pension

Both Disability Allowance and Blind Pension are structured to support recipients to avail of their own employment opportunities, be that self-employment or insurable employment. When an individual commences employment, they can avail of an income disregard of €140 per week. In addition, 50% of earnings between €140 and €375, are also disregarded for the purpose of the means test. Earnings above €375 are assessed at 100%. As part of Budget 2023, I have increased the earnings disregard for both the Disability Allowance and Blind Pension by €25 per week, from €140 to €165.

- Partial Capacity Benefit

The Partial Capacity Benefit scheme allows a person who has been in receipt of Invalidity Pension or Illness Benefit, the latter for a minimum of 26 weeks, and who may not have full capacity for work, to enter or return to employment or self-employment and continue to receive a partial or full payment. The personal rate of payment of Partial Capacity Benefit is based on a medical assessment of a person’s restriction regarding their capacity for work and the payment they are moving from, i.e., Invalidity Pension or Illness Benefit. After the medical assessment, if a person's restriction regarding their capacity for work is rated as moderate, severe or profound their payment continues at 50%, 75% or 100% of their previous rate, respectively. If assessed as ‘mild’ they will not qualify for Partial Capacity Benefit.

Partial Capacity Benefit has been designed so there are no restrictions/limits on earnings from employment or on the number of hours a person can work under the scheme. A person who participates on the scheme may return to an Illness Benefit or Invalidity Pension payment if, for example, the employment ceases or if the person cannot continue to work.

- Back to Work Enterprise Allowance (BTWEA)

The Back to Work Enterprise Allowance scheme encourages people getting certain social welfare payments to become self-employed. This includes persons in receipt of Disability Allowance and Blind Pension. A person who avails of the Back to Work Enterprise Allowance scheme retains a percentage of their social welfare payment for up to 2 years. Once accepted onto the scheme the person retains 100% of their original payment in year one and 75% in year two.

- Reasonable Accommodations and Self Employment

The Departments Reasonable Accommodation Fund includes the Workplace Equipment Adaptation Grant (WEAG). Where a person with a disability is self-employed and requires a more accessible workplace or adapted equipment they can apply for a grant towards the costs of adapting premises or equipment. A grant of up to €6,350 is available towards the cost of adaptations to premises or equipment. It is important to note that applications from persons who are self-employed which may be in excess of this sum may be considered on an individual basis, up to a maximum of €9,523, if specialist training for assistive technology is required.

A review of the Reasonable Accommodation Fund is ongoing and it is expected that the review will be published before year end.

As part of my department’s commitments under the Comprehensive Employment Strategy, a review of the Wage Subsidy Scheme is currently being undertaken and a public consultation will be held in the coming months. The public consultation will invite people with disabilities, employers, and the general public to share their views on the WSS. These views will be used to inform the WSS review and the future of the scheme.

I can assure the Deputy that I will keep my department’s employment support schemes for people with disabilities under review, such as the WSS Review outlined above, to ensure that they continue to meet their policy objectives. However, any potential changes to these schemes can only be considered in the wider budgetary and policy context.

I trust that this clarifies the issue for the Deputy.