Written answers

Tuesday, 8 September 2020

Department of Employment Affairs and Social Protection

Covid-19 Pandemic Unemployment Payment

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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766. To ask the Minister for Employment Affairs and Social Protection the projected cost of the Covid-19 pandemic unemployment payment in 2020; the projected cost for 2021 based on the current scheme arrangements; and if she will make a statement on the matter. [22571/20]

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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767. To ask the Minister for Employment Affairs and Social Protection the projection of the average number of expected recipients of the Covid-19 pandemic unemployment payment for each month remaining in 2020; the projections for 2021 up to1 April, in tabular form; the basis for the financial modelling of the cost of the scheme for the rest of the year; and if she will make a statement on the matter. [22572/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 766 and 767 together.

As part of a suite of measures announced in the July Stimulus, the Pandemic Unemployment Payment will now be extended to April 2021.

By week-ending Friday, 11th September 2020, the PUP scheme will have cost an estimated €3.44 billion.

The cost of PUP in the period between September and December 2020, and up to April 2021, will depend on the ongoing suppression of the Covid-19 virus and on progress in reopening the economy and society. 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 factors will determine the extent of labour market recovery between now and the year-end and into 2021. These are matters that will be considered during the coming weeks and the estimated cost of PUP to the year-end and the allocation for 2021 will be determined as part of that process.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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768. To ask the Minister for Employment Affairs and Social Protection the number of persons currently on the full €350 rate of the Covid-19 pandemic unemployment payment; the number on the lower rate; the number of persons that have had their payment reduced since the rule change; and if she will make a statement on the matter. [22573/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The COVID 19 Pandemic Unemployment Payment was introduced in March 2020 as a time-limited emergency measure to meet the surge in unemployment which resulted from the effects of the Coronavirus pandemic. To be eligible for this payment a person must have been in employment /self-employment immediately prior to 13th March 2020 and have become fully unemployed or suffered a collapse of income if they are self -employed, due to the downturn in economic activity caused by the COVID-19 pandemic and are not being paid by their employer. At its peak, in early May, almost 600,000 people were in receipt of the payment. This number has fallen in the interim as people are enabled to return to work.

The latest data indicates that some 110,730 people who received a payment of €350 before the implementation of the 2-tier structure have received at least one €203 payment. The two-tiered payment structure for the pandemic unemployment payment was implemented by my Department on July 7th 2020.

The latest data available from September 1st 2020 indicates that 166,841 people are now in receipt of the higher payment of €350 while 58,115 people are in receipt of the lower payment of €203.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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769. To ask the Minister for Employment Affairs and Social Protection the number of new recipients of the Covid-19 pandemic unemployment payment in each week since 29 June 2020; the number of closed claims in each week; the net decrease or increase in each week; and if she will make a statement on the matter. [22574/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Information on Inflows and Outflows for the pandemic unemployment payment each week since June 29th 2020 are set out in the table below

PUP payment date Inflow Outflow Net
30 June 4,423 31,368 - 26,945
07 July 5,326 31,400 -26,074
14 July 3,606 70,812 -67,206
21 July 3,436 35,253 -31,817
28 July 3,632 30,619 -26,987
04 August 6,514 18,786 -12,272
11 August 3,669 15,768 -12,099
18 August 4,798 34,904 -30,106
25 August 7,085 9,022 -1,937
01 September 5,015 10,493 -5,478

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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770. To ask the Minister for Employment Affairs and Social Protection the number of persons on the full rate of Covid-19 pandemic unemployment payment that will be reduced to the €300 rate on 17 September 2020 based on current claimants; the number that will drop to the new rate of €250 based on current claimants; the number on the lower rate; and if she will make a statement on the matter. [22575/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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On Tuesday September 1st, 224,956 people received a Pandemic Unemployment Payment (PUP). Of those, 58,115 received a €203 payment, and the remaining 166,841 people received a €350 payment.

As outlined at www.gov.ie/en/publication/0b0fc-covid-19-pandemic-unemployment-payment-rates-from-17-september-2020/ , from September 17th, the PUP will be paid at three rates.

While it is not possible to have precise figures on the number of people who will receive a PUP at these various rates due to unknown future inflows and outflows to and from the payment, estimates based on current recipients indicate that 19% of PUP recipients would received a PUP at the €203 rate, 24% of current recipients would receive a PUP at the €250 rate, and 57% would receive the PUP at the €300 rate.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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771. To ask the Minister for Employment Affairs and Social Protection the analysis that has been carried out of the current recipients of the Covid-19 pandemic unemployment payment to determine the number that would be eligible for higher social welfare payments or benefits; and if she will make a statement on the matter. [22576/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The emergency Covid-19 Pandemic Unemployment Payment has been introduced as a time-limited emergency measure so that payments can be made as quickly as possible to the large number of people who have become fully unemployed due to the pandemic.

Individuals who were working and were also in receipt of any social welfare payment such as a Carer's Payment, Working Family Payment (WFP) or One-Parent Family Payment, can, provided they have lost their job due to COVID-19, also claim the COVID-19 emergency payment, in addition to retaining their existing welfare payment.

The rate of payment was initially set at €203, which is equivalent to the maximum personal rate of Jobseeker’s Benefit and Allowance. Subsequently the rate was increased to €350 per week, which is broadly equivalent to the two-person household rate for the main social welfare payments.

In June of this year, further changes were made by modifying the payment level to align it with prior earnings of recipients of the payment subject to an overall cap of €350 per week. Currently, 74% of recipients receive payment at the rate of €350, while 24% receive payment at a rate of €203 where their average prior earnings were less than €200 per week.

Where a person has an entitlement to a higher rate of payment on an alternative social welfare scheme, the advice from my Department from the outset of the Covid crisis is that they should transfer from the Pandemic Unemployment Payment to that payment. Staff of the Department are available to advise persons in that regard, including at Intreo Centres and Branch Offices and via the Income Support Helpline. Typically, potential entitlement to a higher rate of payment exists where a person has an adult and one or more dependant children. This is because they can claim an additional allowance for their adult dependant and child dependants, which will bring their weekly payment to in excess of the €350 weekly payment due under the emergency COVID-19 Pandemic Unemployment Payment.

As each case involves an individual assessment of a person’s circumstances, the information requested by the Deputy is not available.

I hope that this clarifies the matter for the Deputy.

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