Dáil Éireann Debate, Thursday - 28 April 2022
35. Deputy Bríd Smith asked the Minister for Finance if the employment wage subsidy scheme will end for all recipients on 30 April 2022; the supports that will be available for any sector that continues to be affected by a downturn as a result of the pandemic; and if he will make a statement on the matter. [21408/22]
Amharc ar fhreagraThe Employment Wage Subsidy Scheme (EWSS) is an economy-wide support with the objective of supporting employment and maintaining the link between the employer and the employee. The EWSS is operated on a self-assessment basis with the onus on applicants to satisfy themselves that they fully meet the eligibility criteria for the scheme as set down in the legislation and to self-declare to Revenue that they correctly qualify for the scheme.
As part of Budget 2022, the Government agreed the future of EWSS including its graduated exit strategy. These arrangements were subsequently enhanced on a number of occasions in response to the public health circumstances. The Finance Act 2021 and the current Finance (Covid-19 & Miscellaneous Provisions) Bill 2022 provide for the phased exit arrangements for the scheme. The EWSS remains in operation until 30 April 2022 for most eligible businesses, with a graduated step down in rates taking place in the run-up to the end of the scheme.
In recognition of the public health situation in late December 2021, I announced on 21 January 2022 that businesses availing of EWSS that were directly impacted by the public health restrictions of December 2021 would continue to receive the enhanced rates of subsidy for the month of February and the graduated step-down in subsidy rates would be delayed by one month with such firms continuing to receive support under the scheme until 31 May 2022 at a flat rate of €100 per employee. Furthermore, the employer must have a tax clearance certificate to be eligible for EWSS and must continue to meet the requirements for tax clearance throughout the scheme.
The relevant public health restrictions are those that were in place between 20 December 2021 and 22 January 2022 and imposed an 8pm closing time on hospitality venues, including restaurants, bars and cafes, and reduced capacity on many indoor events, thus directly curtailing the ability of the businesses to trade.
Revenue is operating these changes to the scheme on an administrative basis, pending enactment of the current Finance (Covid-19 & Miscellaneous Provisions) Bill 2022.
The Employment Wage Subsidy Scheme represents a substantial and key part of this Government’s response to the Covid crisis. It has been an extremely successful policy intervention and one which has greatly assisted us in maintaining the link between employers and employees. The overall support provided to date (21st April) is €7.79 billion, comprising direct subsidy payments of almost €6.76 billion and PRSI forgone of €1.03 billion to 51,900 employers in respect of 734,200 employees.
Without the support of EWSS, many businesses would simply not be in existence today and would certainly not be in a position to adapt as responsively as they have to the reopening of all sectors of our economy.
The EWSS operates as a highly effective and responsive instrument. At the same time, we must seek to ensure it is withdrawn at the right time.
By end April 2022, a wage subsidy scheme (TWSS or EWSS) will have been in place for over 2 years. Any further prolongation of EWSS runs contrary to the original objectives of the EWSS as an emergency measure to assist businesses through the pandemic. We are now, correctly, in the final phase of the scheme which is important for everyone, including the businesses themselves and the wider body of taxpayers given the substantial cost to the Exchequer.
Finally, the EWSS is one of many supports provided by the Government during the pandemic. The full range of supports can be located on the Department of Enterprise, Trade and Employment’s website at the following link - enterprise.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/
