PUP numbers fall as people needing subsidy or unemployment payment now at almost 751,500

There are now 305,515 people availing of the PUP as the pace of people leaving the scheme quickens as more parts of the economy open up

Shoppers on St Patrick's Street, Cork City, as retail outlets reopened recently. Picture: Larry Cummins

The number of people requiring the pandemic unemployment payment fell by almost 24,480 this week as the reopening of the economy gathers pace — but almost 751,500 people are still relying on some form of wage subsidy or unemployment payment to make ends meet.

Department of Social Protection figures show there are now 305,515 people availing of the PUP. The pace of people leaving the scheme has quickened recently as more parts of the economy, such as hairdressing, retail, and construction, continue to open up.

However, some 90,125 people employed in the accommodation and food service industry, as well as 29,250 involved in administrative and support services, are still receiving PUP. Recent reductions in the number of people claiming PUP in these areas, which were among the worst-hit areas since the onset of the crisis over a year ago, have been relatively small.

Accommodation and food service is the one part of the economy that has yet to fully reopen as wet pubs and restaurants for indoor dining remain shut for a number of weeks yet under the Government’s Covid-related health restrictions.

The latest numbers come as the Government said this week that it plans to start phasing out the PUP scheme, with plans to cut the payments from the autumn.

The Government said that together with people on the live register, there was a total of 487,485 people requiring a pandemic payment or regular unemployment payment.

However, the numbers requiring some form of wage subsidy or unemployment payment this week rises to almost 751,500, when people whose wages are being subsidised under the employment wage subsidy scheme are taken into account.

Since its inception, the cost of the PUP scheme has cost around €7.5bn, including the €91m paid this week. The cost of Revenue’s employment wage subsidy scheme is running at around €3.3bn and, together with its predecessor, the cost of wage subsidies now totals around €6bn.

Revenue figures last week also showed there were 22,600 businesses and 26,600 business premises availing of the Government’s Covid restrictions support scheme, or the CRSS.

The cost of CRSS is now running at €570m.