Increase in financial support for those who have lost jobs
UNEMPLOYMENT support for the hundreds of thousands laid off due to the coronavirus crisis will increase from €203 to €350 per week, the Government has announced.
The payment will also apply to the self-employed who no longer have work.
An emergency wage subsidy scheme was also confirmed, under which the Government will pay 70% of a worker’s salary up to a cap of €410 per week net – equivalent to the after-tax income of a worker on around €40,000.
Taoiseach Leo Varadkar said any person in a household who is unable to work after being asked to self-isolate because a fellow householder is showing symptoms is entitled to illness benefit of €350 per week – even if they do not have the illness themselves.
Paschal Donohoe said the country is ‘accosted by a pandemic that knows no border or boundaries’.
Speaking at a Government briefing, the Minister for Finance said: ‘If this public health crisis is like no other, then this economic crisis is also very different to others.
‘It requires a different response. It needs speed and it needs scale and this is because the very severe disruption that has occurred has placed otherwise healthy and viable businesses in jeopardy.
‘The wage subsidy screen agreed today is a payment to employers to encourage them to retain employees on their payroll during this period. It will be available to all employers who suffer either a minimum of 25% decline in turnover, an inability to pay normal wages and outgoings and other circumstances. For the next 12 weeks such employers will be supported in the order of 70% of an employee’s income and the maximum weekly tax free payment will be €410 per employee.’
To qualify, employers must declare to Revenue that they have experienced ‘significant’ disruption due to Covid-19, with a minimum of 25% decline in turnover, and an inability to pay normal wages and other costs, in accordance with guidance that will be issued by Revenue.
The scheme will provide support on incomes up to €76,000 or twice average earnings. It will be capped at net €350 for incomes between €38,000 and €76,000. The Government
is also introducing legislation to prevent renters from being evicted and any rent increases for the duration of the crisis.
Landlords can seek a mortgage payment break of up to 3 months if their renters are affected by the virus and the mortgage break will not affect credit records.
Meanwhile, the Commission for Regulation of Utilities (CRU) has issued a moratorium on disconnections of domestic customers for non-payment to gas and electricity suppliers. The suppliers have arrangements in place for any domestic/residential customers in arrears which are overseen by CRU and have a number of emergency provisions to assist Pay As You Go customers.