Covid supports for workers and businesses to be retained for at least three more months
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Covid supports for workers and businesses will not be touched for at least another three months as the Government "go for broke" to get the economy back up and running.
The Cabinet is due to sign off on the retention of the full rate of the Pandemic Unemployment Payment (PUP), as well as a the Employer Wage Subsidy Scheme (EWSS), and the Covid Restrictions Support Scheme until at least September and businesses could receive up to €20,000 in a 'bullet payment' when they reopen across June and July.
However, the measures will plunge the country further into deficit as the EWSS will cost €1.4bn alone to extend for another three months.
It is hoped that PUP payments, which are currently costing the State around €100m each week, will dwindle off significantly as more people go back to work.
Some 25,000 people a week have been coming off this support since restrictions began to ease.
Tánaiste Leo Varadkar yesterday confirmed that a phasing out of the PUP will not begin until at least September and possibly even October.
"It was always introduced as a temporary measure for the pandemic. So it will have to end at some point, but we're not going to phase it out too quickly.
"Bear in mind, a lot of businesses really aren't going to reopen until later on in July. Hospitality, tourism aviation, for example, and some don't even have a date yet for reopening," he said.
A decision on closing the PUP off to new entrants will also be made as Mr Varadkar said that "at this stage, very few people who are losing their jobs now are losing them as a consequence of the pandemic".
However, the Government has yet to agree on the rates waiver, with a number of members arguing that it should not be extended for businesses who have been able to reopen and are back to pre-pandemic trading.
Mr Varadkar said the National Resilience and Recovery Plan will be "all about jobs and business" and getting the public finances back in order.
He said the plan would be "backed up with real money" and will move towards introducing statutory sick pay, a living wage as well ensuing everyone has access to an occupational pension.
"We think the best way that we can avoid the need for tax increases or spending savings in the future is to go for broke now to make sure that our economy bounces back really fast, and that's what the plan is all about," the Tánaiste said.
More than €900m in funding has been secured for this year from the EU's Recovery Fund and this will be used for 25 different project areas including the roll out of digital e-health, some public transport investment in rail, third level research and data centres.