Written answers

Tuesday, 30 June 2020

Department of Employment Affairs and Social Protection

Covid-19 Pandemic Unemployment Payment

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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808. To ask the Minister for Employment Affairs and Social Protection the number of persons on the pandemic unemployment payment due to have it reduced to €203 as a result of having previously earned less than €200 in wages, in receipt of child benefit. [12884/20]

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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811. To ask the Minister for Employment Affairs and Social Protection the number of persons on the pandemic unemployment payment due to have it reduced to €203 and in receipt of child benefit, that were not previously in receipt of another social welfare payment (details supplied). [12887/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 808 and 811 together.

I am advised that at this juncture it is not yet possible to report on the number of persons due to have their pandemic unemployment payment (PUP) adjusted from 7 July 2020. I will however provide the Deputy with the requested information as soon as it is available.

The number of people receiving the PUP continues to decrease week-on-week, and based on the payments issued on June 30th, there were 438,933 recipients. I am advised that approximately one-quarter of these recipients would have their payment reduced to €203, of which 20% would receive child benefit. Of those receiving child benefit and an expected €203 PUP, roughly three-quarters were not previously in receipt of any of the social protection payments mentioned by the Deputy. Note that this will be subject to further revisions once the payment data for 7th July 2020 becomes available.

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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809. To ask the Minister for Employment Affairs and Social Protection the number of women on the pandemic unemployment payment due to have it reduced to €203 as a result of having previously earned less than €200 in wages.; and if she will make a statement on the matter. [12885/20]

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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810. To ask the Minister for Employment Affairs and Social Protection the number of women on the pandemic unemployment payment due to have it reduced to €203 that were not previously in receipt of another social welfare payment (details supplied). [12886/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 809 and 810 together.

I am advised that at this juncture it is not yet possible to report on the number of persons due to have their pandemic unemployment payment adjusted from 7 July 2020.  I will however provide the Deputy with the requested information as soon as it is available.

The number of people receiving the pandemic unemployment payment continues to decrease week-on-week, and I am advised that based on the payments issued on June 30th, a total of 213,838 recipients were female.  Approximately one-quarter of female recipients would have their payment reduced to €203 and the vast majority of these (90%) are not in receipt of the payments mentioned by the Deputy. Note that this will be subject to further revisions once the payment data for 7th July 2020 becomes available.

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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812. To ask the Minister for Employment Affairs and Social Protection the estimated cost of the pandemic unemployment payment to the end of 2020. [12888/20]

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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813. To ask the Minister for Employment Affairs and Social Protection the estimated cost of the pandemic unemployment payment if it were maintained at €350 for all those availing of the scheme to the end of 2020. [12889/20]

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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814. To ask the Minister for Employment Affairs and Social Protection the estimated difference in cost of leaving the pandemic unemployment payment at current levels to the end of 2020, compared to reducing it to €203 for those previously earning less than €200 in wages from 29 June 2020. [12890/20]

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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815. To ask the Minister for Employment Affairs and Social Protection the estimated cost of the pandemic unemployment payment for July 2020. [12891/20]

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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816. To ask the Minister for Employment Affairs and Social Protection the estimated cost of the pandemic unemployment payment for July 2020 if it was maintained at €350 for all recipients. [12892/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 812 to 816, inclusive, together.

Following a recent Government Decision, the Pandemic Unemployment Payment (PUP) has been extended to week-commencing 10th August 2020.  The performance of the labour market in the weeks and months ahead, including the capacity of employers to respond to the phased return to work following the Covid-19 lockdown, and the level of any resulting residual unemployment, remains uncertain.

These estimates are informed by the forecast for unemployment in the Stability Programme Update, published in April 2020.  In that respect, they are subject to change as labour market and payment trends develop.

By week-ending Friday, 14th August 2020, the PUP scheme will have cost an estimated €3.3 billion.

The estimated cost of PUP in July 2020 is approximately €450 million.  The cost of maintaining PUP payments at €350 a week for those earnings less than €200 a week is estimated at an additional €53 million in July.

The cost of PUP in the period between August and December 2020 will depend on the ongoing suppression of the Covid-19 virus and on progress in reopening the economy and society.  Both of these factors will determine the extent of labour market recovery between now and the year-end and the approach that the Government will take with respect to what further changes, if any, may be made to the PUP.  These are matters that will be considered during the coming weeks and the estimated cost of PUP to the year-end will be determined as part of that process.

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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817. To ask the Minister for Employment Affairs and Social Protection if declarations of income from cash tips will be accepted in assessing income for the purposes of the pandemic unemployment payment. [12893/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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On Friday 5th June the Government approved the extension of the Pandemic Unemployment Payment until 10th August and announced a two-level payment structure to link the payment to gross prior earnings.  This change to the payment structure ensures that the rate is fair and targeted.

Where a person’s gross weekly earnings were €200 or higher there will be no change to their rate of payment.  If a person’s gross weekly earnings were under €200 the rate of the pandemic unemployment payment will be adjusted to €203.  This change will take effect in payments made from Tuesday 7 July.

Tips are treated as reckonable earnings and must be declared on tax returns to the Revenue Commissioners.  The earnings details reported by the Revenue Commissioners will be used as the basis to determine the appropriate rate applicable for the Pandemic Unemployment Payment.  

I trust this clarifies the position.

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