Social Welfare (Covid-19) (Amendment) Bill 2020
One of the important aspects of this bill that has been lost and forgotten about in recent in days is the provision to award credited PRSI contributions for people in receipt of the Pandemic Unemployment Payment.
Each of us, as public representatives, help people navigate the social welfare system. Each one of us will have encountered situations where a person has not qualified for a support payment because of a lack of contributions. In some cases it’s only a matter of a handful of contributions.
I’ve certainly seen it happen to people applying for the State Pension, for Illness Benefit, for Carers Benefit and other supports.
The system of contributions works away in the background. Everyone at work receives a contribution on foot of their paid contributions and almost everyone, who is receiving a support payment, receives a credited contribution.
A person’s PRSI contribution record is of vital importance. It ensues a person receives the correct social welfare support when needed. That is why Section 8 of this bill is so important. By amending the Social Welfare Consolidation Act of 2005, this bill will protect the PRSI contribution record for everyone in receipt of the Pandemic Unemployment Payment.
In addition, the section will help protect jobs by significantly reducing the PRSI employers contribution to a rate of half a per cent for employers who have availed of the Temporary Wage Subsidy Scheme.
The Temporary Wage Subsidy Scheme continues to provide vital financial assistance to businesses across the country and helps employers to keep the vital link with their staff.
The Pandemic Unemployment Payment was introduced as an emergency measures through Section 202 of the 2005 Social Welfare Act. It was the correct decision given the unprecedented nature of the Covid-19 crisis and has, and continues to support, individuals, families and households across the country.
Most legislation permits emergency measures to be introduced. But it is not ideal in the longer term which is why this legislation is important.
The Pandemic Unemployment Payment will be put on a statutory footing and the rules underpinning it will be clarified.
It is everyone’s hope that the need for the PUP will diminish over the coming months and I note that new applications will not be accepted after 17th September while payments will begin to be tapered from that date.
By that time, the myriad of other support programmes and benefits which have been introduced or are about to be introduced. The existing supports like the Temporary Wage Support Subsidy, the Re-Start Grants and the Rate waivers are all having positive impacts now.
New Supports that will be introduced include:
- Employment Wage Support Scheme – to April 2021 – a direct payment to employers for each workers, including seasonal staff and new hires;
- Expansion of Re-Start Grant – payment increased to €25,000 and now includes businesses such as B & Bs
- Expansion of the commercial rates waiver
- Launch of the Stay and Spend Incentive for taxpayers spending on accommodation and dining out between October 2020 and April 2021
- Launch of the €10 million Re-Start Fund for the Tourism Sector,
Among others, will all lessen the need for the Pandemic Unemployment Payment.
We cannot lose sight, however, of the cost of all of the supports, the Pandemic Unemployment Payment.
The July Jobs Stimulus represents a €7.4 billion investment in our economy. However, the Stimulus is in addition to other programmes and supports introduced since March which total over €14 billion.
Borrowed money will have to be repaid. So, it is only right and proper that supports and programmes, whether direct grants or payments or supported loans, are administered carefully and with the consideration that the expenditure of public moneys requires.
Part of this includes control measures and reviews to ensure that the supports are the right supports reaching the right person or business at the right time. It would be scandalously reckless if such control measures and such oversight were not in place.
Thankfully, the number of persons in need of the Pandemic Unemployment Payment continues to fall. And I expect that as the other support measures that I’ve outlined come into operation, the numbers needing the Pandemic Unemployment Payment will continue to fall. And hopefully, with a bit of luck and the continued hard work of the people of Ireland, and the medical researchers, we will soon reach a stage where the Pandemic Unemployment Payment will not be needed at all.
Seán Kyne 