Jennifer Whitmore (Wicklow, Social Democrats)
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81. To ask the Minister for Finance if the employment wage subsidy scheme will remain in place for childcare workers that would typically be in receipt of social welfare payments over the summer months or if it is expected that employers will maintain the scheme for this time period; and if he will make a statement on the matter. [32169/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the operation of the Employment Wage Subsidy Scheme (EWSS), which is an economy-wide enterprise support for eligible businesses in respect of eligible employees. It provides a flat-rate subsidy to qualifying employers based on the numbers of paid and eligible employees on the employer’s payroll and charges a reduced rate of Employers' PRSI of 0.5% on wages paid which are eligible for the subsidy payment.

While the criteria for eligibility for business in general is based on a reduction in turnover, as a result of the pandemic and having regard to the importance of maintaining the provision of childcare facilities so as to enable parents to continue in, or to take up, position of employment, the legislation provided that childcare businesses in possession of tax clearance and registered in accordance with Section 58C of the Childcare Act 1991 are eligible for the EWSS.

The objective of the scheme is to support all employment and maintain the link between the employer and employee insofar as is possible. The EWSS has been a key component of the Government’s response to the continued Covid-19 crisis to support viable firms and to encourage employment in the midst of these very challenging times. To date, payments of over €3.4 billion and PRSI credit of over €565 million have been granted to 49,800 employers in respect of 579,400 workers.

I have been clear that there will be no cliff-edge to the EWSS and, as the Deputy will be aware from announcements made on Tuesday 1 June, it has been decided that the scheme is now to be extended until the end of December 2021.

For Q3 2021, the Government has decided to broadly maintain the status quo for EWSS, including the enhanced rates of support, with a modification to widen eligibility, and maintaining the reduced rate of Employers’ PRSI of 0.5%. The are no changes in respect of the qualification criteria for EWSS eligibility for the childcare sector.

The Government has approved the extension of the EWSS for Q4 2021, however, it is considered too early as yet to prescribe the precise operational parameters of the scheme that should apply for that quarter. Decisions in that regard will be taken closer to the time, possibly around the end of August / early September, with the benefit of more up-to-date information on a number of variables, including the overall epidemiological situation, progress made in reopening all sectors of the economy, the vaccine efficacy, as well as the operation of the EWSS during the early parts of Q3.

To answer the Deputy’s specific question regarding the position as to whether the EWSS will remain in place for childcare workers that would typically be in receipt of social welfare payments over the summer months, I would note that this is a matter for the each individual employer to determine as appropriate to their business needs.

In general terms, where a childcare facility would normally close for the summer months but due to current Covid-19 circumstances, the employer wishes to keep the employees on the payroll to open the facility, or to retain the employees on payroll for training or curriculum development purposes, etc., then an eligible employer can remain in the EWSS. This was the also the case last year when the Temporary Wage Subsidy Scheme (TWSS) was in place.

Furthermore, I would add that there is no distinction made regarding eligibility of the scheme or the subsidy amounts payable based on whether the business has closed or is operating with curtailed services due to the public health restrictions. All qualifying employers are entitled to claim the EWSS in respect of the eligible employees on their payroll.