The Pandemic Unemployment Payment or PUP was an emergency measure introduced in the exceptional circumstances of Covid-19 to help cushion the financial impact on people temporarily laid-off work as a direct result of public health measures mandated by the Government. It has been an important support for hundreds of thousands of workers and their families through COVID19. To date, over €8.2 billion has been paid out on PUP to nearly 900,000 recipients.
Thankfully, the requirement for emergency measures such as the PUP is diminishing as people are vaccinated and increasing numbers return to work. That is why, in order to allow as much time as possible for employment to recover, it has been decided to phase the return to normal jobseeker arrangements over an extended period. Accordingly the PUP rates of payment will remain unchanged until September when they will commence a gradual reduction over 6 months back to standard jobseekers terms.
I am pleased to say that our experience has shown that people are willing to return to work as restrictions are eased. This confirms research by the ESRI that indicates that the vast majority of people choose to take up work rather than remain on welfare even in situations where the financial benefit of working is low or in some cases even when it is negative. I also note that in a recent budget perspectives paper the ESRI pointed out that for most people income from employment will exceed the value of the PUP payment.
Where an employee closes their pandemic unemployment payment to return to work but has been temporarily placed on a shorter working week they may be entitled to a Jobseeker’s payment or Short-Time Work Support. Short Time Work Support is a social insurance income support payment provided under Jobseeker's Benefit. An individual’s eligibility for Short Time Work Support is dependent on the extent to which their working days are reduced. They must be temporarily working a standard reduced weekly work pattern, working 3 days or less per week having previously worked full time. The payment is made in respect of the days of work that have been lost and is not taxable.
Where a person is working part-time, up to 3 days per week, and does not have a standard work pattern they may be eligible for the social insurance based Jobseeker’s Benefit or the means tested Jobseeker’s Allowance for the days they are unemployed and not being paid.
I trust this clarifies the position.
