Dáil Éireann Debate, Wednesday - 24 February 2021
209. Deputy Jim O'Callaghan asked the Minister for Finance if his Department will carry out a review of policy regarding the temporary wage subsidy scheme with regard to childminders; and if he will make a statement on the matter. [10177/21]
View answerThe Temporary Wage Subsidy Scheme (TWSS), which is provided for in section 28 of the Emergency Measures in the Public Interest (COVID-19) Act 2020, operated from 26 March 2020 to 31 August 2020 and was replaced by the Employment Wage Subsidy Scheme (EWSS) from 1 September 2020.
The scheme was introduced as an emergency measure to provide financial support to businesses that were severely impacted by the pandemic and enabled employees whose employers could no longer afford to pay wages receive subsidy payments. The scheme was not intended as a support to employers who employed people for childminding duties.
The provision of childminding duties by an employee on behalf of their employer is not a business activity. A relevant business in the context of the TWSS generally includes manufacturing, buying, selling or supplying goods or services with a view to making a profit, none of which can be associated with employing a childminder. It is also not possible for a person who employs a childminder to meet the ‘25% turnover’ eligibility test as there is no turnover associated with engaging a childminder.
The TWSS operated on a self-assessment basis with the onus on applicants to satisfy themselves that they fully met the eligibility criteria for the scheme and to self-declare to Revenue that they correctly qualified. To assist employers in determining their eligibility, Revenue published very extensive guidance, which clearly set out the qualifying conditions, including the requirement that a minimum 25% decline in business turnover had occurred due to COVID-19 related restrictions.
There are no plans at this point to revisit the parameters of the TWSS along the lines mentioned by the Deputy.
