Written answers

Tuesday, 15 December 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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350. To ask the Minister for Employment Affairs and Social Protection if it will be ensured that when a person applies for the pandemic unemployment payment that the Revenue Commissioners and-or her Department include in the calculation a person's annual income, for the purposes of deciding on the appropriate rate of payment, any income from State benefits including maternity or parental benefits to avoid discriminatory underpayment; and if she will make a statement on the matter. [43093/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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In March 2020 the rate of payment for the Pandemic Unemployment Payment was 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 changes were introduced to the rates structure to link it to prior earnings. This approach is sustainable and fair given the extended duration of the scheme.

The Pandemic Unemployment Payment is a significant measure in alleviating the financial hardship of those at risk of poverty because of a loss of employment arising from the Covid-19 pandemic. Research and data published by both the CSO and the ESRI have indicated that the Pandemic Unemployment Payment has been instrumental in alleviating the impact of Covid-19 related lay-offs on poverty.

Currently, the Pandemic Unemployment Payment is paid at 4 rates: €203 where prior earnings were less than €200 per week; €250 where prior earnings are between €200 and €300; €300 where prior earnings are between €300 and €400; and €350 where prior earnings were €400 or more.

Prior earnings are determined with reference to Revenue returns of reckonable earnings or income in the relevant reference period divided by the associated number of paid PRSI contributions or weeks of employment. Social welfare payments are not taken into account as they do not fall to be considered as reckonable earnings or income. This is consistent with the approach taken in other social welfare schemes, such as Jobseekers Benefit and Illness Benefit, where the rate of payment is determined by reference to prior earnings.

I hope that this clarifies the matter for the Deputy.

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