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FINANCE MINISTER PASCHAL Donohoe has said the wage subsidy “will not be disappearing overnight”.
Speaking to reporters at a press conference on the latest Exchequer figures, the minister said any decisions on the future of the scheme will be based on trying to balance the unwinding of the scheme and keeping people in jobs.
Last week, Minister for Employment Affairs and Social Protection Regina Doherty told the Dáil she will bring forward proposals for some changes to the Covid-19 Pandemic Unemployment Payment and the wage subsidy scheme within the next week or so.
Doherty reiterated that the Pandemic Unemployment Payment and the Temporary Wage Subsidy Scheme will be extended beyond the original June end date.
“As we speak, there are over 400,000 jobs that may not be in place if it was not for the existence of the wage subsidy scheme,” said Donohoe.
The minister added that the government is hoping to make an announcement in the coming days that will outline the “future of the wage subsidy scheme across coming months into the future and the pandemic unemployment payment – we want to give guidance for both of those”.
“I’m absolutely aware that this subsidy scheme is currently keeping hundreds of thousands of citizens in a job who would otherwise may not have one,” he said.
The minister added that this was the purpose of the creation of the scheme.
“I think it’s going to be fair to say that we’ll be very careful with how we adjust it,” he added.
When asked if there will be a lengthy period of adjustment, the minister replied:
“I haven’t decided on that yet. One of the things that we are trying to evaluate at the moment is we are now approaching the end of the first phase of the reopening of the economy. And in a few weeks time we will be able to understand how companies who are on the scheme, how they change their employment and their wage levels as their part of the economy reopens. We don’t have that information at the moment. When we have that information through it will guide us regarding decisions that I make on the rest of the wage subsidy scheme.”
Donohoe said concerns employers have regarding the disappearance of wage subsidy scheme, and the effect that it will have on jobs, is something he “absolutely understands”.
Having said that, the minister said the wage subsidy scheme can’t continue forever.
“It is a hugely significant intervention in our economy. And it is one that cannot be sustained forever,” he added.
Speaking last month about the extension to the schemes, Taoiseach Leo Varadkar said there can’t be a situation whereby different schemes apply to unemployed.
He highlighted that some people who became unemployed before Covid-19 are receiving Jobseekers Benefit, while those who became unemployed during Covid-19 are on the €350 pandemic payment.
Those that become unemployed after Covid-19 will also have to be placed on a social welfare regime.
“At some point we’re going to need to pull them all together,” he said.
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Tweaking the pandemic payment makes sense. It has served its purpose well but was a bit one size fits all due to urgency of it’s rollout.
@Fionn Darland: you’re dead right, it’s the one and only thing i think they ever got right and now is the time to tweak it.
Hold another election in a couple of months and I bet FFG will disappear over night though
@Agenda21: a nice thought but the sheep will always follow.
@Agenda21: you obviously don’t read the opinion polls.
@Ciaran O’Mara: yep and for good reason.. We will see, any way whatever support ffg have now will be gone soon enough. I promise
@Agenda21: ah the same promise that SF would have no problem forming a government?
Whoever is in government after Covid-19 has to make some seriously unpopular decisions to balance the books.
SF won’t want that poisoned chalice.
I’ve heard lots (in two businesses) returning to work and getting less and more than €350 and even those who are working the same hours and shifts.
@Peter: As soon as a business is reopened the employees should have to return to work or go back on old-fashioned job seekers allowance. Staying unemployed because €350 for free is better shouldn’t be an option for anyone. Issues around minimum wage, unsafe working conditions etc. are separate debates and shouldn’t be used as smoke screens to drag the arse out of this payment.
@Peter: don’t forget you have to pay tax on the 350 it will come out of your tax credits next year if you don’t pay your tax bill this year
@Kem Trayle: Long term welfare payments should never be an option anyway..Anyone can be unfortunate enough to have the rug pulled from under them and thats where welfare needs to kick in but with a limit of maybe 5 years.You’d find people would be much more active seeking work if they knew the free money etc was going to run out at some point.outside of the pandemic there are those that it would not pay to go to work and thats a ridiculous situation.
@Peter: someone earning part time getting 70 euro now getting 350.
What’s that about.
@paul gurney: yea and if they can’t? What do we do then?
@Shazam37: Job seekers should be based on the PRSI (stamps) paid. WHen your stamps run out you get a payment on a preloaded card. The only difference is that you can only spend it on 0% or 13.5% VAT items, with a small percentage for luxury goods. This was trialed in Australia a number of years ago and it was found that drink/drug use and subsequent abuse reduced.
As far as the PUP payment goes, it was a good idea initally with so many out of work at the same time but they should have been means tested like for Jobseekers by now. All citizens are supposed to be treated equal but if you lost your job a week or two before this payment was introduced you would be on job seekers which may be a lot less than this payment. Where’s the equality in that?
@Dave Barrett: It puts money back in the economy which is what we all should want. Hopefully we can all pick-up where we left off and I wouldnt begrudge anyone an extra couple of hundred a week.
@Dave Barrett: kept the economy going, kept roofs over people’s heads. Smart people on less than the 350 probably saved some.
Isn’t it a sad state of affairs though that there is people surviving on 70 a week in the first place.
@Rossa Crowe: Except it’s not free made-up money – it’s coming from my taxes which I’d prefer was spent on health, education, infrastructure etc. rather than providing extra leisure money for the long-term unemployed.
@Kem Trayle: would you really when the schools they built from tax payers money were unsuitable, the children’s hospital and the money involved the broadband debacle, the water meters scandal where only Denis ó Brien came out winning. The list is endless, I’d much rather people have a few quid extra to spend in the shops and on necessities than leave the current lot play monopoly with our tax money.
@Kem Trayle:
They’re still being paid with COVID on their payslips even though they’re back to work though not full time.
@Dave Barrett:
Yeah that’s crazy. That should never have happened or at least been capped at the €200 or €205 or whatever it is.
@The next small thing:
When you say it was trialled one Australia does that mean they’re not doing it now permanently?
@Rossa Crowe:
Yes but I’m sure a lot of that is going out of the country unfortunately.
I suppose Pascal will be adjusting those on full pay in the public sector as well, I wonder how much has being payed to those since last March.
Either will austerity
have your say