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Newsagents' body reports 25 bogus claims for Covid-19 pandemic payment

The association has reported the allegedly bogus claims to the Special Investigations Unit of the Department
The association has reported the allegedly bogus claims to the Special Investigations Unit of the Department

The body representing convenience stores and newsagents has criticised the Government's Covid-19 Pandemic Unemployment Support Scheme, claiming it makes it more lucrative to leave work than to remain in employment, after it reported 25 allegedly bogus claims to the Department of Employment Affairs and Social Protection.

The reports, made by the Convenience Stores and Newsagents Association, relate to cases where the worker had walked off the job despite the employer needing to keep them on.

Following a meeting of the national executive of the association this afternoon, CEO Vincent Jennings revealed that the organisation has so far reported 25 allegedly bogus claims to the Special Investigations Unit of the Department.

Mr Jennings queried why the Department had chosen not to seek confirmation from the employer of an applicant for the Covid-19 pandemic payment that they were genuinely being let go, prior to approving payment of the €350 per week.

He said convenience stores and newsagents had no problem with employees receiving payment for having lost their job, or if their health was compromised.

However, he said his members could not accept the introduction of a rate of income support that is twice, and in some cases three times the take-home pay of weekend or part-time workers.

"We are very concerned that this scheme is making it more lucrative to leave work than remain in it," said Mr Jennings.

He also demanded to know how many part-time workers had availed of the scheme from his area of the retail sector.

The Department of Employment Affairs and Social Protection confirmed that no documentary evidence that an employer has actually laid a worker off or made him/her redundant is currently being sought from applicants for the Covid-19 pandemic payment. 

In a statement, the Department said that normally, if someone makes an application for a jobseeker's payment, they are asked to provide the Department with a letter from their employer showing that they have been let go.

However, it said the Covid-19 unemployment payment is an emergency payment and as such the application process is streamlined and much simpler.

It stated: "The employer is not required to provide any information at application stage - the form is a self-declaration from the affected employee without the need for supporting documentation from the employer."

It went on to say: "The Department is continuously working to ensure claims are eligible which involves ongoing contact with Revenue and the Department will formally contact customers to seek clarification or additional information if required."