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Covid-19 Pandemic Supports

Dáil Éireann Debate, Wednesday - 29 September 2021

Wednesday, 29 September 2021

Questions (82, 85, 86)

Niall Collins

Question:

82. Deputy Niall Collins asked the Minister for Finance if help and advice can be provided in relation to a facility (details supplied) in County Limerick; and if he will make a statement on the matter. [47076/21]

View answer

Kathleen Funchion

Question:

85. Deputy Kathleen Funchion asked the Minister for Finance if the EWSS scheme will continue for childcare services until 31 December 2021; and if he will make a statement on the matter. [46903/21]

View answer

Kathleen Funchion

Question:

86. Deputy Kathleen Funchion asked the Minister for Finance his plans to review the employment wage subsidy scheme for the childcare and early years sector on 30 September 2021; and if he will make a statement on the matter. [46907/21]

View answer

Written answers

I propose to take Questions Nos. 82, 85 and 86 together.

Section 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 scheme 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 €4.844 billion and PRSI credit of over €769 million have been granted to 51,400 employers in respect of 660,400 workers.

I have been clear that there will be no cliff-edge to the EWSS and, as the Deputy will be aware from announcements made in June, it has been decided that the scheme is now to be extended until the end of December 2021. For Q3 2021, the Government decided on 1 June to broadly maintain the status quo for EWSS, including the enhanced rates of support, with a modification to widen eligibility, and maintaining the reduced rate of Employers’ PRSI of 0.5%.

Further, as announced yesterday, the Government has agreed that there will be no change to the EWSS for the month of October 2021, which means that the scheme will continue to operate in its current form as per the arrangements for Q3 2021. Issues around the configuration of the scheme beyond October are currently being considered and full details will be announced on Budget Day, 12 October 2021

The Government remains fully committed to supporting businesses and employers insofar as is possible at this time.

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