Dáil Éireann Debate, Wednesday - 21 April 2021
534. Deputy Jim O'Callaghan asked the Minister for Finance the number of persons currently being supported by the employment wage subsidy scheme; the total expenditure on the scheme and its predecessor since March 2021; his plans to extend the scheme; and if he will make a statement on the matter. [20682/21]
View answerI assume the Deputy is seeking the total expenditure on the Employment Wage Subsidy Scheme (EWSS) and its predecessor, the Temporary Wage Subsidy Scheme (TWSS) since March 2020 and I will answer as such.
The TWSS was in place for 22 weeks between 26 March and 31 August 2020. It was introduced as an emergency income support for employees of vulnerable firms whose businesses had been negatively impacted by the restrictions that had to be introduced to stop the spread of the COVID-19 virus and whose turnover had reduced by at least 25% during Q2 while the strictest public health measures were in place. The support was paid via the employer so as to maintain employment links between the employee and employer insofar as was possible and, to that end, the rate of Employers' PRSI was also significantly reduced to 0.5%. The level of income given to each individual employee was based on previous wages received in January and February 2020. Over 66,500 employers received a subsidy under the TWSS with payments worth just under €2.9 billion paid out to a total of 664,000 workers.
The EWSS replaced the TWSS from 1 September 2020. The EWSS is an economy-wide scheme, the objective of which is to support employment and maintain the link between the employer and employee insofar as is possible. The EWSS has been a key component of the Government’s response to the continued Covid-19 crisis to support viable firms and encourage employment in the midst of these very challenging times.
In terms of the numbers of persons currently being supported by EWSS, the most recent data relate to the March 2021 where 309,000 employees were supported at a cost of €399.5 million in direct subsidy payments and a further €62.1 million in Employers' PRSI foregone. These figures are provisional and subject to revision.
The EWSS focuses primarily on business eligibility, delivering a per-head subsidy on a flat rate basis to the employer. The EWSS “turnover test” has been specifically designed so as to target the subsidy at otherwise viable employers whose businesses continue to be adversely impacted by COVID-19 by requiring a comparison of the firm’s pre-pandemic operations with their current operations. The legislation provides that the employer must be able to demonstrate that they are operating at no more than 70% in either the turnover of the employer’s business or the customer orders received by the employer in Q1 and Q2 2021 compared with the same period in 2019.
To date, including the March 2021 figures above, EWSS subsidy payments of over €2.7 billion have been made in addition to PRSI relief worth over €455m granted to over 48,500 employers in respect of over 549,600 employees.
I have been clear that there will be no cliff-edge to the EWSS and, as the Deputy will be aware from announcements made on Tuesday 23 February last, it has been decided that the scheme is now to be extended until the end of June 2021. Similarly, the COVID Restrictions Support Scheme has also been extended to end June 2021.
With the agreement by Government on the revised plan, COVID-19 Resilience and Recovery 2021: The Path Ahead, a cautious and measured approach will be taken as we lay the foundations for the full recovery of social life, public services and the economy. It is therefore appropriate that key business supports should remain in place until the end of June 2021.
As the revised plan is implemented, the EWSS will play an important role in getting people back to work as public health restrictions are eased, thereby reducing the numbers dependent on social welfare payments over time, including the Pandemic Unemployment Payment (PUP).
Consideration is being given to the fact that continued support could be necessary out to the end of 2021 to help maintain viable businesses and employment and to provide businesses with certainty to the maximum extent possible. Decisions on the form of such support will take account of emerging circumstances and economic conditions as they become clearer.
The Government will continue to assess the effects of the Covid-19 pandemic on the economy and I will continue to work with Ministerial colleagues to ensure that appropriate supports are in place to mitigate these effects.
The Government remains fully committed to supporting businesses and employers insofar as is possible at this time.
