Tuesday, 29 September 2020

Ceisteanna (269)

Catherine Murphy

Ceist:

269. Deputy Catherine Murphy asked the Minister for Finance the estimated cost of extending the employment wage subsidy scheme until 31 March 2021. [26336/20]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I am advised by Revenue that, as of 25 September 2020, there were 36,746 employers registered for the Employment Wage Subsidy Scheme (EWSS) which is considered a strong level of participation so far and, notably, over 82% of the employers availing of the TWSS when it finished at the end of August.

As set out in the July Stimulus Package, it is expected that the EWSS will support around 350,000 jobs into the beginning of 2021. 

On this basis, it is estimated that the EWSS will cost €2.25 billion (€1.35 billion in 2020 inclusive of seasonal workers and €0.9 billion in 2021). 

However, the scheme is demand led and a significant surge in claims may require a policy review and re-evaluation of the terms of the scheme.  These cost predictions are therefore subject to review and for every additional 50,000 qualifying employments, the cost increases by €0.25 billion.

The operation of the EWSS and its effectiveness will be kept under close review over the coming months.  In fact, the relevant legislation obliges me to monitor and superintend the administration of the scheme and empowers me to make certain adjustments across the whole scheme where I determine that these are necessary.