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Covid-19 Pandemic Unemployment Payment

Dáil Éireann Debate, Tuesday - 2 November 2021

Tuesday, 2 November 2021

Ceisteanna (612)

Cathal Crowe

Ceist:

612. Deputy Cathal Crowe asked the Minister for Social Protection if measures are being considered to support workers who remain on the pandemic unemployment payment for the foreseeable future who are concerned about keeping up with their life expenses on a lower rate of income as pandemic unemployment payment rates decrease over the coming months. [53113/21]

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Freagraí scríofa

The Pandemic Unemployment Payment (PUP) was introduced as an emergency measure, in the exceptional circumstances of Covid-19, to support customers unable to work due to the Government mandated public health restrictions. To date expenditure on the scheme is almost €8.86 billion. The gradual lifting of restrictions and success of the vaccine programme has led to an 85% reduction in the number of recipients of the payment since the peak of the pandemic in May last year. This reduction shows that the need for exceptional measures has diminished and it is important in the interest of fairness and sustainability to return to standard social welfare terms.

In line with the Government’s Economic Recovery Plan, changes have been introduced to the PUP rate to reduce the payment over a gradual period back to standard jobseekers terms. With effect from payments on 14th of September, the payment rates are now €300, €250 and €203. Further rate changes will take place from 16th November 2021 and 8th February 2022. As customers go on to the €203 rate, they will move to jobseekers terms. This measure ensures equity of treatment with those who lost their employment before Covid restrictions and those who have lost it since 8 July when the PUP scheme closed to new applicants.

Customers currently receiving the €203 rate of payment will already have been contacted by my Department in relation to their transition from PUP. They have been advised that they will continue to receive PUP until 9th November and will then have the option of qualifying for a Jobseekers payment if they are eligible. Where an application for means tested Jobseeker's Allowance is submitted, the PUP will remain in payment until entitlement to Jobseeker's Allowance is determined while those entitled to social insurance contribution based Jobseeker's Benefit will transfer automatically to the payment after 9th November.

The current maximum weekly personal rate for the Jobseekers schemes is €203 . As part of Budget 2022 I secured an increase of €5 per week in the payment rates for the Jobseekers schemes. With effect from 4th January the maximum personal rates will increase to €208 and proportionate increases will apply to the qualifying adult and child rates.

Over the course of these changes, the Department will offer PUP recipients supports to assist them to return to employment at the earliest opportunity. These may include individualised meetings through the local Intreo centre where support will be provided with Jobsearching or referral to further education or training. The recently launched Pathways to Work Strategy also provides a range of targeted employment and training supports. These include the provision of 50,000 further education and training places, 10,000 apprenticeships and the new Work Placement Experience Programme (WPEP) for customers who have been unemployed for more than 6 months. Participants on WPEP are paid €306 per week and increases are paid for qualified adults and children.

Additional targeted income supports are provided by my Department for individuals who are experiencing financial difficulties, under the means tested Supplementary Welfare Allowance Scheme. These include Rent Supplement, Fuel Allowance and Urgent and Exceptional Needs payments where appropriate.

Although Fuel Allowance is not payable to those in receipt of PUP, time spent on PUP may count towards qualification periods for customers receiving a qualifying payment, for example Jobseeker's Allowance. Fuel Allowance is payable to qualifying customers who have been getting Jobseeker's Allowance for more than 390 days. If a customer has come directly from PUP to Jobseeker's Allowance, then the PUP duration for both 2020 and 2021 can be considered for the purposes of Fuel Allowance eligibility. As part of Budget 2022 a €5 increase was applied to the basic weekly rate of fuel allowance bringing the weekly rate of Fuel Allowance to €33 with effect from payments made on 1st November.

The Money Advice and Budgeting Service (MABS), under the aegis of the Citizens Information Board, also continues to provide assistance to people, in particular those on low incomes or in receipt of social welfare payments, who are over-indebted and need help and advice with debt problems. As part of its free services, MABS provides help and advice to those in mortgage arrears.

I hope that this clarifies the position for the Deputy at this time.

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