Written answers

Wednesday, 19 January 2022

Department of Finance

Covid-19 Pandemic Supports

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

296. To ask the Minister for Finance if he will review correspondence from a person (details supplied); if he will review the issue raised in paragraph two; if he will examine the matter and provide clarity on same; and if he will make a statement on the matter. [63064/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The objective of the Employment Wage Subsidy Scheme (EWSS) is to support 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 Covid-19 crisis. It is an economy-wide scheme that operates across all sectors.

In money terms, the overall support provided to-date (13th January) by EWSS is over €7 billion comprising direct subsidy payments of €6.12 billion and PRSI forgone of €956 million to 51,900 employers in respect of over 706,700 employees.

As the Deputy may be aware, as announced on 9th December the enhanced rates of EWSS subsidy would apply for a further two months, December 2021 and January 2022. This will give certainty to businesses when they need it most.

The Government and I have been clear that there will be no cliff edge to supports for employers but we have also been clear that the EWSS cannot run indefinitely, nor is it sustainable to continue with the enhanced rates for a prolonged period of time given the very substantial costs to the Exchequer.

As such, from 1 February 2022, the original two-rate structure of €203 per week and €151.50 per week will apply; for March and April 2022 the flat rate subsidy of €100 per week will apply and the scheme will end on 30 April 2022.

In relation to the Deputy’s specific question, the Government further announced on the 21 December 2021, that the EWSS will reopen for certain businesses who would otherwise not be eligible and that such businesses can continue to be supported until the expiry of the scheme on 30 April 2022. The new arrangements for EWSS will provide employers who have previously availed of EWSS but who are no longer eligible, with the opportunity to re-qualify for the scheme where they meet certain conditions. Broadly, to re-qualify the business must experience a 30% reduction in turnover, or customer orders during a particular reference period. Further details of the qualifying conditions can be located on my Department’s website at the following link- www.gov.ie/en/press-release/bf5d1-government-announces-significant-expansion-of-supports-for-businesses-affected-by-the-latest-public-health-restrictions/.

Employers that qualify for re-entry to the scheme will receive support on a prospective basis from 1 January 2022 onwards, and they can remain in the scheme until its expiry date (30 April 2022).

Finally, as has been the case throughout the pandemic, the Government will continue to monitor developments closely.

Comments

No comments

Log in or join to post a public comment.