Dáil Éireann Debate, Wednesday - 16 June 2021
42. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which he expects to continue to support family-owned businesses that may have suffered more than others during the lockdown; and if he will make a statement on the matter. [32508/21]
View answerThe Government’s comprehensive package to help the wide range of businesses during the pandemic, including family businesses and workers, includes the Employment Wage Subsidy Scheme (EWSS), the Pandemic Unemployment Payment (PUP), the COVID-19 Restrictions Support Scheme (CRSS), the Small Business Assistance Scheme for COVID (SBASC), low-cost loans, the deferral and warehousing of tax liabilities and the waiver of commercial rates.
The schemes are there to help meet fixed costs that cannot be avoided and to provide basic weekly income support up to maximum of €350 per week. They are not created to provide compensation for loss of personal income above this level or compensation for loss of profits for any sector.
Budget 2021 provided a significant package of tax and expenditure measures to build the resilience of the economy and to help vulnerable but viable businesses across all sectors, and the new National Economic Recovery Plan includes €4 billion of stimulus to fuel the economy and for businesses to recover and rebuild.
The Plan has outlined the changes to the current financial supports as public health restrictions unwind, assuring that the CRSS will remain in place for businesses that have to stay closed. For businesses re-opening in June and July, they will receive a double payment for the first three weeks upon reopening up to a maximum of €30,000. This will help firms with cashflow and to restock and re-engage with staff.
The PUP is a statutory income support for qualifying employees and the self-employed who have lost employment due to Covid-19. Under the Recovery Plan to support the reopening of the country, the PUP has been extended beyond the end of June 2021, in recognition that some sectors will continue to be impacted. The scheme is due to close for new applications from 1st July 2021 due to the progress in the roll out of the vaccine programme and reopening of the economy. The PUP will continue to be paid at existing rates until 7th September, when the rate will commence a gradual reduction back to the Jobseekers rate on a phased basis. Further adjustments are scheduled from 16 November 2021 and from 8 February 2022. As recipients are placed on to the €203 rate, they will be transferred to standard Jobseeker terms commencing from this September.
A person in receipt of the PUP who is engaging in self-employment can earn up to €960 over a rolling eight week period and continue to maintain entitlement to PUP. Where a self-employed person exceeds this threshold and works up to 24 hours per week, they may be eligible for the Part Time Job Incentive scheme which has been extended to the self-employed who transition from the PUP. This enables a person to take up limited self-employment and retain a weekly personal payment of €128.60. This scheme will be available to the self- employed until the end of the year.
The Enterprise Support Grant (ESG) is available to eligible self-employed recipients who close their PUP and re-start their business. The grant, of up to €1,000, is payable to self-employed individuals who employ fewer than 10 people, have an annual turnover of less than €1 million and are not eligible for support from similar business reopening grants from other Departments. The ESG will continue to be available to self-employed people closing PUP claims on its current terms until the end of 2021, at which point it will revert to its normal rules. Self-employed people closing their PUP claim to reopen their business will be able to avail of this grant even if they have previously claimed it as part of a reopening in 2020.
Details of the PUP and the ESG are available on the website of the Department of Social Protection, which has the remit for these Schemes.
The EWSS is being extended until the end of 2021, the commercial rates waiver will continue during the third quarter of this year for those availing of it, the 9% VAT rate will be extended until the 1 September,2022, tax warehousing is being extended until the end of the year and will be interest free in 2022.
Eligibility for the SBASC for Q2 2021 applications has been broadened in two ways. Where businesses have a minimum turnover of €50,000 they can benefit from a €4,000 grant. This now includes businesses in non-rated premises, thereby benefitting self-employed people working from home, who meet all other eligibility criteria. It also provides for a grant of €1,000 for businesses with a minimum turnover of €20,000 and a maximum turnover of €49,999, with all other SBASC eligibility criteria applying.
Applications close on 21 July for this scheme.
A streamlined Business Resumption Support Scheme will be introduced in September 2021 for businesses with significantly reduced turnover as a result of public health restrictions. More details will be announced shortly.
I would urge business owners to seek the supports outlined above if they have not already done so. I would also suggest they contact their Local Enterprise Office who can signpost them and advise them of supports that may be available for their business.
