Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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265. To ask the Minister for Finance the number of businesses that are receiving payments under the employment wage subsidy scheme; the amount has been paid in total under the scheme to date in 2021; and the amount that is budgeted for payment in 2022; and the changes to rules for eligibility for this scheme; and if he will make a statement on the matter. [54682/21]

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). It provides a subsidy to qualifying employers based on the numbers of paid and eligible employees on the employer’s payroll and charges a reduced rate of employer PRSI of 0.5% on wages paid which are eligible for the subsidy payment.

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 continued Covid-19 crisis to support viable firms and encourage employment in the midst of these very challenging times.

In September 2021, which is the most recent month for which complete payslip information from employers is available for analysis, 27,500 employers received payments through the EWSS in respect of almost 312,000 employees, at a cost of €448.6m (€391.3m in direct subsidy and €57.3m in PRSI foregone).

The cost to date (4th November) is almost €6.2 billion, comprising of direct subsidy payments of €5.35 billion and PRSI forgone of almost €850 million to 51,600 employers in respect of over 681,000 employees.

Of the total expenditure, 2020 accounts for approximately €1.64 billion (€1.39 billion direct subsidy and almost €250 million in PRSI foregone) and 2021 accounts for approximately €4.56 billion (€3.96 billion in direct subsidy and almost €600 million in PRSI foregone).

It is widely acknowledged that the EWSS has played a central role in supporting businesses, encouraging employment and helping to maintain the link between employers and employees during this pandemic.

Government policy has been that there will be no cliff edge to the support, at the same time, it is necessary to unwind and phase out this temporary, emergency support measure. That is why, on Budget Day, I announced the extension of EWSS in a graduated form until 30 April 2022. This ensures there will be no sudden end to the EWSS and also provides clarity and certainty to business.

The following are the broad parameters of this extension:

- The current arrangements, including the enhanced rates of subsidy, will remain in place until November 2021;

- For December 2021 to February 2022, the original two-rate subsidy of €151.50 and €203 will apply;

- For March and April 2022, a single flat rate of €100 will apply and the reduced rate of Employers’ PRSI will be reinstated for these two months;

- Businesses availing of the EWSS on the 31st of December 2021 will continue to be supported until the 30th of April 2022. The scheme will close to new employers from 1 January 2022.

Essentially, these arrangements will ensure that the EWSS will remain in place for six months after the removal of most public health restrictions and for over two months after the PUP ceases to exist.

It is estimated that the cost of extending EWSS for the six month period November 2021 until April 2022, in the graduated form that I outlined, will be in the region of €1.26 billion, with 2021 accounting for €580 million and 2022 accounting for €680 million. This costing is based on a tentative estimate of an average of approximately 220,000 employees being supported by the scheme over the period, with possibly higher numbers in the earlier months.

I am satisfied that these revised arrangements for EWSS strike a balance between helping those businesses which continue to need support, while recalibrating the scheme in light of the wider economic recovery.