Extension of Employment Wage Subsidy Scheme welcomed

The Minister for Finance Paschal Donohoe and the Minister for Public Expenditure and Reform Michael McGrath have today (Thursday) announced plans for enhanced support for businesses who qualify for the Employment Wage Subsidy Scheme (EWSS) for December 2021 and January 2022.

The Ministers said plans to design a scheme to provide targeted support for businesses which are subject to the latest public health restrictions, proved “administratively very complex” and would not be operational ahead of Christmas as had been intended.

Minister Donohoe has now decided that maintaining the enhanced rates of subsidy under the EWSS for a further two months is a relatively more efficient and effective way to support affected businesses in the short term.

Minister Donohoe has also decided to extend the end-date of the CRSS to 31 January 2022 to align with the requirement for nightclubs and discos to close until 9 January 2022 under the Health Regulations.

A further amendment to the Finance Bill 2021 will be brought in the Seanad stage next week to give effect to these changes.

Speaking today Minister Donohoe said: “I fully appreciate the difficulty many businesses have been presented with in recent weeks given the evolving situation with Covid-19 and recent decisions taken regarding public health restrictions.

“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.

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.

The Covid Restrictions Support Scheme will be extended until January 31 2022 to allow nightclubs who are closed under Health Regulations until January 9 access to this much needed support.”

Minister McGrath said:

“The extension of the CRSS and EWSS schemes are a further part of the Government’s ongoing package of supports for the economy. To date, over €20 billion in direct supports has been provided to help the economy and households.

He also announced that the commercial rates waiver has been extended until the end of March 2022.

“We have seen a strong rebound in the economy and strong economic growth. The level of unemployment has fallen below 7% and the public finances are in a better place than envisaged a year ago.

“However it is clear that the hospitality and live entertainment sectors have been impacted significantly and they have carried the burden of much of the public health restrictions and must be supported.

“Today’s announcement is consistent with the commitments outlined in Budget 2022 to take decisive action where needed to respond to the ongoing challenges of the pandemic”.

Ibec, the group that represents Irish business, has warmly welcomed the announcement from Government that the Employment Wage Subsidy Scheme (EWSS) is to be extended for another two months at full rates.

Ibec CEO Danny McCoy said: “The EWSS has been instrumental throughout this pandemic in ensuring the most vulnerable of businesses remain viable. Today’s announcement that the scheme is to be restored at full rates for a further two months will bring much needed relief to businesses across a broad range of sectors of the economy who have experienced disruption and substantial lost business because of the pandemic.

“Business also welcomes the additional announcements that the Covid Restrictions Support Scheme and the Commercial Rates waiver are to be extended. While challenges undoubtedly remain, these supports will each be important in keeping many businesses afloat, particularly those in the Experience Economy, for whom the traditional revenue-generating festive period has been severely disrupted. The supports will help those businesses to remain open and continue to trade safely over the coming period.”