Written Answers. - Parliamentary Debates - Houses of the Oireachtas

Questions— 14 February 2012. Written Answers
Minister for Social Protection (Deputy Joan Burton): Self-employed persons are liable for
PRSI at the Class S rate of 4%, which entitles them to access long-term benefits such as State
pension (contributory) and widow’s, widower’s or surviving civil partner’s pension
(contributory). Ordinary employees who have access to the full range of social insurance
benefits pay Class A PRSI at the rate of 4%. In addition, their employers make a PRSI contribution
of 10.75% in respect of their employees, resulting in the payment of a combined 14.75%
rate per employee under full-rate PRSI Class A. (For employees earning less than €356 per
week, the rate of employer’s PRSI is 4.25%).
Any changes to the PRSI system to extend the full range of social insurance benefits, including
illness benefit, to self-employed persons would have significant financial implications and
would have to be considered in the context of a much more significant rise in the rate of
contribution payable. I established the Advisory Group on Tax and Social Welfare last year to
meet the commitment made in the Programme for Government. The Advisory Group will,
inter alia, examine and report on issues involved in providing social insurance cover for selfemployed
persons in order to establish whether or not such cover is technically feasible and
financially sustainable. In addition, the Actuarial Review of the Social Insurance Fund, which
is due to be completed in mid-2012, will examine this matter.
Self-employed individuals may establish entitlement to assistance-based payments such as
Disability Allowance. Disability Allowance is a weekly payment made to persons with a disability
whose employment capacity is substantially restricted by reason of their disability and
whose means are insufficient to meet their own needs and those of their dependents. As well
as providing income support for people with disabilities, incentives towards employment and
training are also a key feature of Disability Allowance. An income disregard for earnings from
rehabilitative employment provides that all earnings up to €120 per week are disregarded as
means when assessing entitlement, while income between €120 and €350 is assessed on the
basis of 50 cents for every euro earned.
365. Deputy Willie Penrose asked the Minister for Social Protection the number of hours
persons, who are in receipt of social welfare, can work on a weekly basis where such persons
might have to do the same for rehabilitate purposes or which might arise due to part time work
becoming available and whereby they still can receive their specific social welfare payment;
and if she will make a statement on the matter. [8468/12]
Minister for Social Protection (Deputy Joan Burton): Where a person is in receipt of a
disability allowance payment, s/he may take up employment of a rehabilitative nature, subject
to the approval of the Department. There is no limitation on the number of hours they may
work in such circumstances. Any earnings up to €120 per week will be disregarded in the
means-test for the disability allowance payment, while earnings above that threshold will be
assessed at 50%.
Hitherto, where a person was in receipt of a social insurance based invalidity pension, or
long-term illness benefit, s/he could apply for an exemption to take up rehabilitative employment
which did not exceed 20 hours per week. With effect from 13 February 2012, a new
scheme has been introduced which offers a more flexible long-term support to claimants of
invalidity pension or long-term illness benefit. The partial capacity benefit scheme will provide
an opportunity for people with disabilities to have their capacity for work assessed and to
receive an ongoing income support payment based on this assessment. Any increase being paid
in respect of a qualified adult or qualified children will not be affected.
The scheme is open to people who are in receipt of invalidity pension or who have been in
receipt of illness benefit for a minimum of six months. Participation in the scheme is voluntary
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