Department raised concerns over Covid-19 death-in-service payment 

Officials from the Department of Public Expenditure raised concerns that some of the reasoning for the scheme 'was not substantiated'. Picture: AP Photo/John Minchillo

A government department raised a series of concerns over a Covid-19 death-in-service payment saying eligibility seemed “very wide” and no evidence had been provided to support claims it would help with recruitment and retention of healthcare staff.

The Department of Public Expenditure also asked whether some families would receive multiple payments through other compensation schemes and about how it could be determined if the person had caught the virus in the workplace.

It also questioned whether the scheme could lead to employers “maintaining poor, and even dangerous, workplace practices” in the knowledge a no-fault compensation scheme was in place.

Officials from the department said there needed to be a reference included that healthcare employers had taken all appropriate steps to mitigate the risk of Covid-19 spreading.

Specific observations from the health section of the Department of Public Expenditure in June of last year also said some of the reasoning for the scheme was “not substantiated”.

A note of the views said: “The proposal that prospective recruits are incentivised by an ex-gratia payment made if they die in the circumstances outlined is not credible.

It is unlikely that this scheme would have little or any impact on recruitment and retention in the heath sector."

The note warned of the dangers of trying to “ringfence” the scheme to include only healthcare workers saying this would be “very difficult”.

It said any compensation scheme in one sector was likely to be demanded by other groups in similar circumstances including gardaí, teachers, prison officers, and other public service frontline staff.

Attempts to include private sector healthcare workers in the scheme was also likely to prove challenging.

The note said: “This scheme is likely to be very difficult to administer and unlikely to be contained.” 

It queried why it seemed as if all HSE staff were included in proposals and not only those who were working on the frontline.

Implications across public sector

In a submission for Public Expenditure Minister Michael McGrath in July 2021, department officials said it was their “strong view” that the scheme could have implications across the public sector.

It said the likely cost was €1.5m based on a €100,000 payment for each person who had died at that stage.

However, it warned: "The risk is the precedent this might set, which could lead to calls for non-health care workers (public or private) who have passed away to be subject to a similar scheme."

It said it had a number of policy issues that needed to be addressed: “The potential risks also need to be considered and addressed including legal risks in relation to existing or future cases, consequential demands over time for ex-gratia compensation for other purposes and the extension of the scheme beyond the health sector.”

In follow-up correspondence in November following meetings about the proposal, the Department of Public Expenditure said its concerns had still not been “convincingly addressed”.

Mitigating risks

By December 2021, the Department of Health promised to work with the attorney general and the State Claims Agency to “mitigate the risks” involved with the scheme.

It said it would work to minimise the chance of “consequential claims” following introduction of the payment and that costs would be met from their budget.

The Department of Health had vigorously argued for the death-in-service scheme saying there was a “strong moral case” for it.

It said it would provide “reassurance” to those who continued to work in healthcare facilities throughout the pandemic.

The scheme was eventually approved in January of this year by which time it was thought 21 healthcare workers had passed away from Covid-19 infection in the workplace.

Asked about the records, a spokesperson for the Department of Public Expenditure said: “It is normal practice that there is cross departmental engagement on new policy proposals such as the Covid Death in Service Ex Gratia scheme.