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The \u20ac3.5 billion package of support outlined by the Government will help \u201ckickstart\u201d a jobs-led economy, Taoiseach Micheal Martin has said.<\/p>\nThe \u20ac3.5 billion package of support outlined by the Government will help \u201ckickstart\u201d a jobs-led economy, Taoiseach Micheal Martin has said.<\/p>\n
Announcing the economic recovery plan, ministers laid out how pandemic support will be extended across the summer, but then scaled back as the economy reopens.<\/p>\n
Pandemic-related payments, including the Pandemic Unemployment Payment (PUP) and the wage subsidy schemes, will be reduced or changed from about the fourth quarter of the year.<\/p>\n
The PUP will be closed to new entrants from July, which will be followed by a phased reduction in rates from September until February next year.<\/p>\n
The current rates of payment above the rate of 203 euro will remain in place until September 7, at which point they will begin to be gradually reduced on a phased basis in increments of \u20ac50.<\/p>\n
The first reduction is planned to take effect in payments on September 14th, with subsequent reductions taking effect in mid-November and early February.<\/p>\n
The Emergency Wage Subsidy Scheme (EWSS) will be extended until the end of December, with a different rate to begin in September.<\/p>\n
The Government said the extension of Covid restriction support schemes will give additional support to businesses when they reopen over the summer months.<\/p>\n
It was also confirmed that the 9 per cent vat rate for the hospitality sector will run until September next year.<\/p>\n
The Covid Restrictions Support Scheme (CRSS) will continue in its current form to the end of 2021, with the qualification criteria and payment rates unchanged.<\/p>\n
The Government also announced a new additional business support scheme, Business Resumption Support Scheme (BRSS) for businesses with reduced turnover as a result of public health restrictions.<\/p>\n
It will apply to businesses whose turnover has been reduced by 75 per cent since September last year.<\/p>\n
Minister for Finance Paschal Donohoe said the CRSS has helped more than 22,000 businesses to date.<\/p>\n
Mr Donohoe said that while it will be extended to the end of the year, he hoped to see \u201cfar fewer\u201d businesses needing the support fund.<\/p>\n
The Government also outlined how it will spend the \u20ac915 million of the EU\u2019s Recovery and Resilience Fund, half of which will go towards climate action projects.<\/p>\n
Mr Donohoe said the extension in funding support is to help businesses with cash flow as they reopen. He said it will also support businesses in hiring staff.<\/p>\n
Mr Donohoe also said the extension in the 9 per cent vat rate will help the industry with forward planning and bookings.<\/p>\n
Minister for Public Expenditure and Reform, Michael McGrath, said the recovery plan is a key element in enabling the country to move beyond the pandemic.<\/p>\n
Heather Humphreys, Minister for Social Protection, said that in February there were more than 400,000 people receiving the PUP, while today there are just over 309,000 recipients.<\/p>\n
Ms Humphreys said the Government expects the numbers to fall significantly next week and over the summer.<\/p>\n
Mr Martin also said the recovery plan sets an ambitious target to have 2.5 million in work by the end of 2024.<\/p>\n
\u201cThis Economic Recovery Plan will kickstart a jobs-led recovery and propel the economy forward to a more sustainable, digital and secure future,\u201d Mr Martin added.<\/p>\n