Dáil debates

Wednesday, 7 October 2020

Covid-19 Pandemic Unemployment Payment: Motion [Private Members]

 

10:40 am

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Covid-19 has been an earthquake for our economy and the epicentre of that earthquake has been among those in low-paid employment, predominantly in the retail, tourism and hospitality sectors. The repercussions for them and their families have been enormous. The introduction of the PUP was a lifeline for these workers and their families when it was introduced back in March. However, it also highlighted the fact that our social insurance system is not fit for purpose, something that we must rectify as we emerge from this crisis.

The cuts to the PUP in mid-September came at the worst time for individuals, leaving workers and their families exposed to the impact of further public health measures and we cannot underestimate that impact. As the State finds itself in level 3 this morning, the loss of jobs is inevitable. In my own county of Donegal, PUP claims rose by 33% when we moved to level 3 just under a fortnight ago. Instead of consolidating support for these workers, the Government has decided that this is the time to cut them which is a grave mistake. We know that the average recipient of what is now €300 per week under PUP was earning more than €500 per week before being laid off, something that the Government failed to mention in its amendment. Reversing the cuts to the PUP and reintroducing it at a rate of €350 per week will offer these workers security as they face into the real and ever present prospect of unemployment in the weeks and months ahead.

I also want to talk about the EWSS, which is mentioned in the motion. That scheme is not fit for purpose.

As I said when it was introduced in legislation back in July, it provides no support whatsoever for workers earning below €151.50 per week. That is 153,000 workers who are locked out of the scheme and significantly it cuts the supports for employers for workers in comparison with the previous scheme by as much as 50% for some.

As counties enter level 3, the scheme is inadequate and it needs to be addressed. We need a scheme that guarantees 85% of take home pay for low-paid workers and that guarantees between 50% and 70% of take home pay for other workers, depending on the impact on their employers. This virus will be with us for quite some time and we need to make sure that our income and wage supports can shield workers and families throughout this period.

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