Dáil Éireann Debate, Tuesday - 11 May 2021
240. Deputy Thomas Pringle asked the Minister for Finance if the employment wage subsidy scheme will be extended for the remainder of 2021 to the childcare sector; and if he will make a statement on the matter. [24422/21]
View answerSection 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the operation of the Employment Wage Subsidy Scheme (EWSS), which is an economy-wide enterprise support for eligible businesses in respect of eligible employees. It provides a flat-rate subsidy to qualifying employers based on the numbers of paid and eligible employees on the employer’s payroll and charges a reduced rate of employer PRSI of 0.5% on wages paid which are eligible for the subsidy payment.
While the criteria for eligibility for business in general is based on a reduction in turnover, as a result of the pandemic and having regard to the importance of maintaining the provision of childcare facilities so as to enable parents to continue in, or to take up, positions of employment, the legislation provided that childcare businesses in possession of tax clearance and registered in accordance with Section 58C of the Childcare Act 1991 are eligible for the EWSS.
The objective of the EWSS is to support all 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. To date, payments of over €3 billion and PRSI credit of over €500 million have been granted to 48,900 employers in respect of 558,000 workers.
I have been clear that there will be no cliff-edge to the EWSS and, as the Deputy will be aware, it was decided that the scheme is being extended until the end of June 2021. Similarly, the COVID Restrictions Support Scheme is also been extended to end June 2021.
Motions seeking Dáil approval of the extension of the Covid Restrictions Support Scheme and the Employment Wage Subsidy Scheme to 30 June 2021 took place on Thursday 22 April, during which I reaffirmed the Government’s commitment that there would be no cliff-edge to the economic supports at the end of June.
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 for businesses could be necessary out to the end of 2021 to help maintain viable enterprises and employment and to provide firms 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. At this point, it would be inappropriate to single out any one sector for mention notwithstanding the Deputy's question.
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 within the resources available appropriate supports are in place to mitigate these effects.
