I propose to take Questions Nos. 42 and 43 together.
The Temporary Wage Subsidy Scheme (TWSS) was introduced in March and was specifically designed to support firm viability and preserve the relationship between the employer and employee insofar as is possible through the lockdown period, in circumstances where the employer’s business had been negatively impacted by COVID-19.
Since it was introduced, over 50,000 firms have availed of the scheme (which is almost a third of all employers from 2019). Over 500,000 jobs have been directly supported over the period and many more indirectly. This is considerable coverage and it is noted that the value of payments made to date is over €2 billion.
The key benchmark for employer eligibility, as set out in the legislation, is that turnover in Q2 2020 must be down by at least 25 per cent. Once the employer meets this requirement it remains eligible for the TWSS for the full period of the scheme.
The sum the employer receives is based on the employees who were on their payroll on 29 February 2020, the net salary such employees received in January and February 2020, as well as the extent to which the employer remains able to continue to discharge their legal obligation to pay their employees’ salaries. Unfortunately, the scheme cannot be tailored to meet every individual set of circumstances for either employers or employees. This is because it builds on data that has been returned to Revenue through its real-time PAYE system.
As the public health restrictions are eased, the challenge for the economy and enterprises is evolving. Having regard to the novel circumstances surrounding the re-opening of the economy as well as the need to avoid the risk of forcing otherwise viable firms to close, the former Government announced last month that, as matters then stood, the TWSS would remain in place until the end of August. I can confirm that this remains the position. Work is currently ongoing around how best to support employers into the more medium term, including consideration of support for seasonal workers and new hires. As per the commitment in the Programme for Government, it is planned that the July Jobs Initiative will set out a pathway for the future implementation of the TWSS.
