Dáil Éireann Debate, Thursday - 1 July 2021
121. Deputy Claire Kerrane asked the Minister for Social Protection if she has examined the estimated number of persons who will remain on the pandemic unemployment payment by September 2021 and who will therefore see a reduction in their payment; and if she will make a statement on the matter. [35182/21]
Amharc ar fhreagraThe Pandemic Unemployment Payment, or PUP, has been an important support for hundreds of thousands of workers and their families through COVID19, demonstrating Government's commitment to workers. In total over €8 billion has been paid out on PUP. A total of approximately 870,000 workers have received at least one PUP payment. The Government has also supported employers who have been severely impacted by Covid-19 through the Employment Wage Subsidy Scheme.
Approximately 227,980 people received a PUP payment this week, representing a drop of 254,000, or almost 53%, since the numbers in receipt of PUP peaked this year at around 482,000 in February. This reflects the impact of the careful re-opening of sectors of the economy, where it is feasible to do so. Our experience to date has shown that the requirement for emergency measures has been diminishing as more and more people return to work as restrictions are gradually lifted.
As part of the National Economic Recovery Plan, Government announced changes to PUP including a transitional approach to its withdrawal on a tapered basis over 6 months from this September.
The reduction in PUP numbers will depend on continued progress in re-opening the economy and the response of the labour market to this re-opening.
So far the response of the labour market has been very strong and we still have some key sectors that have yet to re-open or fully re-open. Therefore, although it is impossible to be definitive I would expect that the numbers as of early to mid-September this year (2021) - when the PUP payment rate changes - will fall significantly below their low-point of 200,000 last seen in September of last year (2020). We will continue to monitor the numbers in light of the economy's response to the public health restrictions.
