Pandemic payment to be phased out under government recovery plan

Pandemic payment to be phased out under government recovery plan

Pandemic payment to be phased out under government recovery plan

The government will begin phasing out the Pandemic Unemployment Payment (PUP) from September, it has been confirmed. 

Coalition leaders announced a new national economic recovery plan yesterday.

The phasing out of the lifeline payment introduced during the height of the Covid pandemic was the headline news. The main financial supports available to companies, including the wage subsidy scheme, will be extended.

A number of grants, tax debt warehousing and a commercial rates waiver helping companies bounce back will also be extended.

Taoiseach Micheál Martin told reporters that the amount paid on the PUP will be gradually reduced with it envisaged a final payment under the scheme being made to people next February.

The Emergency Wage Subsidy Scheme (EWSS) which sees the government topping up the wages of employees to help employers deal with the financial strain of Covid, will be extended until the end of the year.

The governemnt says the scheme is supporting some 300,000 jobs. It is available to firms whose turnover is down 30% compared to 2019.

New grants will be available to firms whose turnover is still down by 75% on 2019 levels from September. Also, the 9% VAT cut for the hospitality sector will remain in place until September 2022.

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