The Social Insurance Fund derives income from social insurance contributions paid by employees, their employers, self-employed persons and voluntary contributions.
For these contributions, employees and self-employed workers receive benefits for the periods spent out of employment. Contributions made can therefore be differentiated from taxation in that those who participate do so in the knowledge that once the contributions and any other scheme specific requirements are satisfied, they will benefit from their contribution in the event of certain contingencies arising during their working life (e.g. unemployment, illness, maternity) and thereafter upon retirement from the work force.
Most employed workers pay social insurance under PRSI class A. The entry threshold for class A is low. Employees with earnings of €38 or more per week are liable for PRSI class A contributions. Such contributions entitle employees to all of the social insurance benefits available. These are:
• Adoptive Benefit
• Benefit Payment for 65 Year Olds
• Carer's Benefit
• Guardian's Payment Contributory
• Health and Safety Benefit
• Illness Benefit
• Invalidity Pension
• Jobseeker's Benefit
• Jobseeker's Pay-Related Benefit
• Maternity Benefit
• Occupational Injuries Benefit
• Parent's Benefit
• Partial Capacity Benefit
• Paternity Benefit
• State Pension (Contributory)
• Treatment Benefit
• Bereaved Partner’s (Contributory) Pension
Self-Employed workers entry threshold under PRSI class S is also quite low. Such workers with an annual income of €5,000 or more are liable for PRSI class S contributions. Such contributions entitles the self-employed to most of the social insurance benefits available. The only benefits that are not available to the self-employed are Illness Benefit, Occupational Injuries Benefit and Health and Safety Benefit.
The Programme for Government includes an action to explore the option of giving self-employed workers access to Illness Benefit by means of making a higher PRSI contribution. My Department has commenced work in this regard and this proposal will be progressed over the lifetime of the Government.
The Supplementary Welfare Allowance scheme is the safety net within the overall social welfare system in that it provides assistance to eligible people in the State whose means are insufficient to meet their needs and those of their dependents.
The Basic Supplementary Welfare Allowance provides immediate assistance for those in need who are awaiting the outcome of a claim or an appeal for a primary social welfare payment or do not qualify for payment under other State schemes.
It is a means tested payment and takes account of the income a person or couple has in terms of cash, property - other than the family home - and capital. It does not take account of a person’s expenditure.
A number of client categories are specifically excluded in legislation from receiving the Basic Supplementary Welfare Allowance. These include people in full-time work and people in full-time education. While Basic Supplementary Welfare Allowance is not normally paid to full time students, my department may make an Additional Needs Payment to help meet essential expenses that a person cannot pay from their weekly income or other personal and household resources.
The decision process for Additional Needs Payments involves consideration of the need presented and the ability of the person and their household to meet that need. This entails an assessment, as opposed to a specific means test, of an applicant’s weekly household income, their savings and investments, their outgoings and the type of assistance needed. Alternative sources of support availed of by the person, including other State supports that may already be available to the person are also considered.
I am satisfied at the adequacy of the current level of supports available. Any changes to the level of supports will need to considered in an overall policy and budgetary context with a view to the sustainability of the Social Insurance Fund.
I trust this clarifies the matter for the Deputy.
