I propose to take Questions Nos. 200 and 203 together.
The objective of the Employment Wage Subsidy Scheme (EWSS) 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 Covid-19 crisis. It is an economy-wide scheme that operates across all sectors.
In money terms, the overall support provided to-date (2nd December) by EWSS is over €6.5 billion comprising direct subsidy payments of €5.684 billion and PRSI forgone of €893 million to 51,700 employers in respect of over 694,600 employees.
The eligibility criteria for EWSS are based on self-assessment principles and the legislation provides that an employer must be able to demonstrate that his or her business will experience a 30% reduction in turnover or customer orders between 1 January and 31 December 2021, by reference to the corresponding period in 2019, as a result of business disruption caused by the Covid-19 pandemic.
As announced today, it has been decided to maintain the enhanced rates of EWSS subsidy for a further two months, December 2021 and January 2022.
Following approval from Government on Friday last, my Department worked with the Revenue Commissioners to further develop a proposal to modify the Covid Restrictions Support Scheme (CRSS) to provide targeted support for businesses which are subject to the latest public health restrictions. The objective of this modified scheme was to provide targeted, timely and sector-specific support to supplement the EWSS payments to affected businesses. However, on further consideration and analysis of the available data, it proved to be administratively very complex to design such a scheme and it would not be possible to have it operational ahead of Christmas as had been intended.
Instead, maintaining the enhanced rates of subsidy under the EWSS for a further two months offers a relatively more efficient and effective way to support affected businesses in the immediate term. This will give certainty to businesses when they need it most.
The Government and I have been clear that there will be no cliff edge to supports for employers but we have also been clear that the EWSS cannot run indefinitely, nor is it sustainable to continue with the enhanced rates for a prolonged period of time given the very substantial costs to the Exchequer.
As such, from 1 February 2022, the original two-rate structure of €203 per week and €151.50 per week will apply; for March and April 2022 the flat rate subsidy of €100 per week will apply and the scheme will end on 30 April 2022.
The Deputies may wish to note that it has also been decided to extend the end-date of the CRSS to 31 January 2022 to align with the requirement for nightclubs and discos to close until 9 January 2022 under the Health Regulations.
A further amendment to the Finance Bill 2021 will be brought in the Seanad stage next week to give effect to these changes.
Finally, as has been the case throughout the pandemic, the Government will continue to monitor developments closely.
