Q&A: What's in the economic recovery plan and what changes are being made to PUP?

Mr McGrath said the Government is “deeply conscious” of how important the pandemic supports are for people, which is why changes will be made in a gradual way. Picture: Sasko Lazarov / RollingMews.ie

The Government has announced a National Economic Recovery Plan to get people back to work following the pandemic. 

Here's a snapshot of what has been announced.

What is in the plan?

The plan aims to get 2.5 million people back to work by 2024.

It will look at new measures for businesses and sector that have been impacted by Covid-19.

The Government said the plan is “all about new jobs, more jobs, better jobs.” The plan will place an emphasis “on upskilling and research, providing targeted support for those sectors most impacted, and investing in areas for long-term growth”.

The Employment Wage Subsidy Scheme (EWSS) is extended until the end of the year, while the Covid Restrictions Support Scheme is also being extended until the end of 2021.

“Initial funding of €915 million through the National Recovery and Resilience Plan, under the European Recovery and Resilience Facility, plus the forthcoming revised National Development Plan, will create a green and digital job revolution,” said the Government.

The plan is broken down into four pillars:

• Helping people back into work by extending labour market supports and through intense activation and skills;
• Re-building Sustainable Enterprises through targeted investments and policies to make enterprises more resilient, innovative and productive;
• A Balanced and Inclusive Recovery through strategic investment, balanced regional development and improving living standards; and 
• Ensuring we have robust, sustainable public finances.

Controversially, however, there will be changes made to the PUP.

What are the PUP changes?

The PUP was due to finish at the end of June, but that has now been extended until September 7.

From September, there will be a three-phase reduction of the payment by €50.

The current weekly rates of support will be gradually reduced over three phases by €50 increments. The first phase of rate changes will apply from 7 September provided progress on re-opening continues. Two further phases of changes will take place over the following months, on 16 November and 8 February, if progress continues as expected.

How much do people on PUP get at present?

The rate of payment for the PUP is linked to previous earnings.

At the top end, if your average weekly earnings were more than €400, the rate of PUP was €350.

At the lower end, if your weekly earning was less than €200, the rate of PUP was €203.

The payment was due to end at the end of the month, but that is to be extended.

How many people receive the PUP?

As of May 25, 333,993 people were in receipt of the payment, with the Department of Social Protection issuing weekly payments valued at over €102m.

The figure represents a decrease of 29,174 people compared to the previous week.

What has the Government said about the PUP changes?

The Minister for Public Expenditure told RTÉ's Morning Ireland prior to the announcement that it is important the country moves to “a more normal social welfare system”.

Mr McGrath said the Government is “deeply conscious” of how important the pandemic supports are for people, which is why changes will be made in a gradual way.

He said that it must be remembered that there are people on a basic social welfare rate that is “considerable lower than the current rate of PUP”.

“If you lost your job in January or February of last year, for example, you're on a considerably lower core weekly social lever rate.” 

Have the Opposition said anything?

Sinn Féin’s Pearse Doherty the Government’s was pulling the rug from under families who lost their job during the pandemic.

Pearse Doherty some people can’t go back to full-time work due to public health restrictions. Picture: Gareth Chaney/Collins

He told the same show that come September, there were will be some in sectors such as hospitality, event management, aviation and tourism who will still be “restricted” from going back to work.

The Sinn Féin finance spokesperson said some people can’t go back to full-time work due to public health restrictions.

“There was a principle here, that for as long as the Government places barriers on people returning to work that those individuals needed to be supported, not fully but with a level of support.” 

Has anything else been said?

The Society of St Vincent de Paul (SVP) said the winding down of the PUP “will create a storm of problems and hardship for thousands of individuals and families”.

The charity welcomed that there “will be no cliff-edge of supports” and has called on the Government to make full use of poverty proofing safeguards in the implementation of changes.

“Taper supports towards those most at risk of financial hardship including low-income families with children, renters and workers in sectors that will be slower to recover from the pandemic,” SVP said.