Written answers
Wednesday, 18 September 2024
Department of Employment Affairs and Social Protection
Social Welfare Schemes
Richard Bruton (Dublin Bay North, Fine Gael)
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445. To ask the Minister for Employment Affairs and Social Protection if she has reviewed the terms of the wage subsidy scheme; and if she has considered extending its terms to those who are self-employed, as many people with a disability have been forced into self-employment by the difficulties often encountered in accessing paid employment which understands the abilities they can deliver in the workplace given the correct environment. [36330/24]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The objective of the Wage Subsidy Scheme is to encourage employers to employ people with disabilities, who they may not otherwise consider due to a potential productivity loss.
The scheme provides financial incentives to employers to hire new staff with a disability for between 15 and 39 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. Persons with a disability who are self-employed, or considering self-employment, cannot avail of the Wage Subsidy Scheme.
Last month, my department published a review of the Wage Subsidy Scheme. The review makes six recommendations, including to reduce the minimum required hours of the scheme, to regularly review the subsidy rate, and to expand the scheme to people who return to work on Partial Capacity Benefit. With these recommendations, the Department aims to make the scheme more accessible and flexible for people with disabilities and their employers. It is hoped that all the recommendations will be implemented by January 2025.
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. For people in employment or self-employment, an income disregard of €165 per week is applied. In addition, 50% of earnings between €165 and €375 is also disregarded for the purpose of the means test. A person can now earn a maximum of €505.10 per week and keep a portion of their Disability Allowance payment while keeping their secondary benefits.
Partial Capacity Benefit: People on Invalidity Pension or Illness Benefit can transfer to Partial Capacity Benefit to return or take up employment. 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. A person's restriction regarding their capacity for work is rated as moderate, severe or profound. 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.
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.
Work and Access Scheme: On 30 July 2024, I launched the new Work and Access Scheme. The scheme offers seven supports to help reduce or remove barriers in the workplace for people with a disability, including self-employed people.
I can assure the Deputy that I will keep my department’s employment support schemes for people with disabilities under review, 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.
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