Written answers

Tuesday, 28 July 2020

Department of Employment Affairs and Social Protection

Covid-19 Pandemic Unemployment Payment

Photo of Aodhán Ó RíordáinAodhán Ó Ríordáin (Dublin Bay North, Labour)
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626. To ask the Minister for Employment Affairs and Social Protection the reason a person (details supplied) is on the lower rate of pandemic unemployment payment in view of the fact that their income exceeds the €200 threshold; her views on the policy issues raised by the circumstances of the case; and if she will make a statement on the matter. [18932/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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From 29th June the rate of the Pandemic Unemployment Payment (PUP) which a person will receive will depend on their gross weekly employment earnings as follows;

- For those whose prior gross earnings were €200 per week or higher (about 75% of recipients), the PUP payment rate will remain at €350 per week;

- For those whose prior gross earnings were up to €199.99 per week (about 25% of recipients), the PUP payment rate will be €203 per week.

- A person who was in receipt of Jobseeker’s Allowance or Jobseeker’s Benefit as a part-time or casual worker immediately prior to receipt of the PUP will remain on the rate of €350 irrespective of their previous earnings.

The rate of the PUP is based on prior earnings notified to Revenue. It is important to note that my Department will only accept earnings which have been notified to Revenue and subject to PRSI.

For employees – the reference periods are 2019 (full year) and 2020 (January/February). 

Where an employee record was found in 2019 or 2020, assessment was based on the information available. A person received the benefit of which ever rate was the more favourable.

Where no employee record was available, my Department looked at the person’s 2018 PRSI record for self-employment PRSI contributions. The assessment of average weekly earnings is based on the Class S PRSI record only.

For the self-employed, the last year for which complete data is available is 2018. This is the year which was used.  While there are a limited number of Class S PRSI returns on record for 2019, these relate to returns under the PAYE system; in a significant number of cases, these returns require further examination, or the data could distort the examination of individual employee returns for that year.

Where no earnings data was available, either as an employee or a self-employed person, the rate of the PUP was reduced to €203 per week.

Under PUP rerating rules, employee records are checked for 2019 first, and then the first nine weeks of 2020, and the more favourable average weekly outcome is given.  2018 is only reviewed for self-employed records if no details are found in both 2019 and 2020.

In the case of the person concerned the Revenue Commissioners has advised that there were no earnings registered in 2019 or 2020.  While he has employee earnings in 2018, under the PUP rerating rules, these are not considered for assessment.  Therefore, the person concerned has been correctly rated to €203 per week.

I trust this clarifies the matter.

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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628. To ask the Minister for Employment Affairs and Social Protection if 2019 tax returns can be taken into consideration when assessing pandemic unemployment payment rates for those who are self-employed. [18983/20]

Photo of Mark WardMark Ward (Dublin Mid West, Sinn Fein)
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630. To ask the Minister for Employment Affairs and Social Protection if the decision to award self-employed persons the pandemic unemployment payment is based solely on 2018 earnings; if so, the reason; if it has been legislated for; if not, if it is at the discretion of her Department; and if there is an appeals process for those who have had their payment reduced. [19051/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 628 and 630 together.

The COVID 19 pandemic unemployment payment was introduced as an emergency measure to meet the surge in unemployment which resulted from the effects of the Coronavirus pandemic. To be eligible for the pandemic unemployment payment a person must have been in employment immediately prior to the 13th March and lost their income from employment due to the onset of the pandemic. Self- employed people must have suffered a collapse in their trading income to the extent that they are available to take up other full-time work.

Where a person is self-employed their gross average weekly income for 2018, the last tax year for which verifiable data on self-employed income is available, is used to calculate the rate of the pandemic unemployment payment. Any person who feels that the assessment of their earnings, based on returns already submitted to Revenue, is inaccurate can ask for a review of their case with further details available on www.gov.ie.

As part of the Governments July stimulus announced last week, changes were introduced to the structure of the pandemic unemployment payment which mean that it continues to be a strong support but is also fair and targeted. From the 17 September 2020 until the 31 January 2021 the Pandemic Unemployment Payment will be paid at 3 rates. The payment rate will depend on the amount previously earned. For people who earned less than €200 per week the rate of the pandemic unemployment payment will be €203 per week. For people who earned €200 to €300 per week, the rate of payment will be €250 per week. For people who earned over €300 per week, the rate of payment will be €300 per week

I trust that this clarifies the matter.

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