Assessment of EWSS is vital to inform future of the scheme

This afternoon my Department has published its assessments on matters relevant to the Employment Wage Subsidy Scheme in compliance with the obligation to monitor the scheme as set out in the legislation.

The EWSS is a central element in the Government's response to Covid-19 and to date payments of over €2.3 billion and PRSI credit of over €400 million have been granted to over 48,000 employers in respect of over 541,000 workers.

The most recent analysis covers the two month period from December 2020 to January 2021 and here are some key points:

•  the total number of workers in receipt of State income supports in January was over 1 million through the EWSS, the Pandemic Unemployment Payment and other social welfare payments.
•  36,800 employers made a claim for EWSS in January for 352,100 workers (15% of the workforce). At 28% of employers, this was up from 23% in November and December.
•  the data suggests that a substantial majority (around 77%) of workers in receipt of EWSS earn below average incomes of €700 per week. 
• 46% of EWSS employers are from just 3 sectors: Wholesale and Retail Trade (17%), Accommodation and Food Service activities (14%), Construction (15%).

See below the breakdown of employers on the EWSS:

Since the onset of Covid-19 one year ago, the Government moved swiftly to introduce income support measures to support those who have been impacted by the imposition of public health restrictions to reduce the spread of the disease.

The following graph shows the total number of people supported by the Temporary Wage Subsidy Scheme, the Employment Wage Subsidy Scheme (which replaced TWSS) and the Pandemic Unemployment Payment over the last year:

This graph shows that once the wage subsidy scheme was established, the numbers on the schemes were relatively stable up until November. This was the case even as the numbers on the PUP reduced, in line with the re-opening of the economy from the end of May until October. Over that period there was significant churn under the headline employee numbers with workers moving from the wage subsidy schemes back to regular, unsubsidised employment, while at the same time workers also moved from the PUP into the wage subsidy measures, re-connecting with an employer.

The design of the EWSS is intended to be responsive to the continued changing environment with respect to Covid-19. The scheme will continue to play an important role in getting people back to work when public health restrictions allow, thereby reducing the numbers dependent on social welfare payments over time including the Pandemic Unemployment Payment.

I'm giving careful consideration to the future of EWSS beyond the end of June 2021. Continued support may be necessary out to the end of 2021 to help maintain viable businesses and provide certainty to the maximum extent possible.

These assessments of EWSS are vital in understanding how the scheme is operating and this ongoing monitoring will be important in informing that decision making process in the coming weeks and months.