Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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491. To ask the Minister for Employment Affairs and Social Protection if she will review correspondence (details supplied); the reason those on incapacity payments are being refused the wage subsidy scheme by her Department having previously been in receipt of it during lockdown in March 2020 due to Covid-19; and if she will make a statement on the matter. [40130/20]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The Government recognises the importance of supporting people with disabilities to access employment opportunities. Through the Comprehensive Employment Strategy, my Department is committed to improving employment outcomes and removing barriers to employment for persons with disabilities. The supports provided are designed to enable them to achieve their employment ambitions by focusing on the individual’s ability and capacity.

The Wage Subsidy Scheme is an incentive to encourage employers to offer substantial and sustainable employment to people with disabilities. It provides financial support to employers who offer employment of at least 21 and up to 39 hours per week.

Partial Capacity Benefit is payable to people who have been in receipt of Illness Benefit (for at least 6 months) or Invalidity Pension and wish to return to work, if their capacity for work is reduced by their medical condition.

The two schemes aim to improve employment outcomes for persons with disabilities, but they operate in different ways and have different qualifying conditions. The Wage Subsidy Scheme is targeted at employers, while Partial Capacity Benefit is targeted at the individual who wishes to return to work. Both are not payable in respect of the same employment position, i.e. an employer cannot receive the Wage Subsidy in respect of a person who is in receipt of a Partial Capacity Benefit payment. This is to avoid a situation whereby a dual subsidy is paid in respect of a single employment position, which would have significant cost benefit implications.

The published Wage Subsidy Scheme Operational Guidelines clearly state that where a potential employee is in receipt of a Partial Capacity Benefit, the person must come off that payment for the employer to avail of the Wage Subsidy Scheme. That position has not changed.

In this instance, it appears that the Wage Subsidy Scheme payment was made to the employer in error. When the error was discovered the payment was stopped.

I trust this clarifies the position for the Deputy.