Covid-19 Pandemic Unemployment Payment

Tuesday, 27 July 2021

Questions (1164, 1179, 1180)

Richard Boyd Barrett

Question:

1164. Deputy Richard Boyd Barrett asked the Minister for Social Protection the estimated annual cost of reinstating the pandemic unemployment to €350 per week. [41234/21]

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1179. Deputy Richard Boyd Barrett asked the Minister for Social Protection the estimated full year cost of the pandemic unemployment payment at current levels from now until the end of 2022. [41251/21]

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Richard Boyd Barrett

Question:

1180. Deputy Richard Boyd Barrett asked the Minister for Social Protection the estimated cost of paying all persons in receipt of pandemic unemployment payment a rate of €350 until the end of 2022. [41252/21]

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Written answers

Minister for Social Protection

I propose to take Questions Nos. 1164, 1179 and 1180 together.

The PUP was introduced as an exceptional measure for employees and the self-employed who lost employment as a direct consequence of Covid-19.

As more and more people return to work every week due to the gradual lifting of restrictions and continued progress on the roll out of vaccines, the requirement for emergency measures is diminishing. As the economy reopens, it is important to transition from emergency pandemic supports to standard social welfare supports.

To allow as much time as possible for the economy to recover and employments to reopen, there will be no change to the PUP rate until 7th September when it will be gradually reduced on a tapered basis over a 6 month period until February 2022 back to jobseekers terms.

As PUP recipients go on to the €203 rate during this period they will be transitioned to standard jobseeker terms with the normal eligibility criteria for jobseekers applied. In the case of those in receipt of another weekly social welfare payment, including carers, they will be contacted by the Department in September and, where they do not return to employment, will transition from PUP.

It is not possible to accurately estimate future trends on schemes such as PUP due to uncertainty regarding the full trajectory of the virus to the end of 2022.

However, for every 100,000 PUP recipients the annual cost of reinstating the PUP to €350 per week would be €260 million.

For every 100,000 PUP recipients the full year cost of the PUP at current levels until the end of 2022 would be €1.56 billion.

The estimated cost of paying a rate of €350 until the end of 2022 is approximately €2.63 billion for every 100,000 recipients.

I trust that this clarifies the matter for the Deputy at this time.