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State spends €11.5bn on Covid-19 welfare supports

The Pandemic Unemployment Payment accounted for €6.3 billion of the total
The Pandemic Unemployment Payment accounted for €6.3 billion of the total

The State spent a total of €11.5 billion on welfare supports over the last year in response to the Covid-19 pandemic, according to the latest figures from the Department of Social Protection.

The Pandemic Unemployment Payment (PUP) accounted for €6.3 billion of that sum, with over 850,000 people receiving support under the scheme, and 20 million individual payments issued.

Around 456,600 are claiming the benefit this week, a decrease of 8,280 compared to last week, and below the peak of 602,000 recorded last May.

However, this week's figure is in addition to the 186,702 people on the Live Register at the end of February.

The PUP was developed over two days and launched on 16 March 2020 as thousands of people lost their jobs overnight due to the first pandemic restrictions.

Over the last 12 months, just under two million PUP claims were processed - though the scheme did undergo some reforms, moving from a flat rate payment of €350 to four rates ranging from €203 to €350 depending on pre-Covid-19 earnings.

The department figures reveal the unprecedented demand for welfare services since the pandemic struck, with staff responding to 10 million phone queries, and its web pages emerging as the most used across the public service.

The level of crisis was indicated by the fact that on 13 March alone, when the restrictions were announced with resulting layoffs, but before the PUP was established, 30,000 people visited Intreo offices seeking help.

Separately, the Temporary Wage Subsidy Scheme which ran from 26 March to 31 August allocated €2.7 billion in payroll supports to 650,000 workers employed by just under 7,000 employers.

Its successor from 1 September - the Employment Wage Subsidy Scheme - has distributed €2.3 billion in supports to around 550,000 workers employed by just under 50,000 employers.

Minister for Social Protection Heather Humphreys said that a year on from the start of the pandemic, it was only right to reflect on the hurt and devastation felt by those who lost friends or loved ones, or found themselves without employment.

However, she said a sense of solidarity had been key in helping to mitigate the worst effects if the virus and support brave frontline professionals.

She praised the role of her department's staff since last March when they mobilised to introduce the PUP within a matter of days, and thanked customers for their cooperation and understanding.

"Last year MyWelfare processed more than 2.9 million customer transactions, compared to 450,000 in 2019," she said.

"The PUP has supported hundreds of thousands of workers, protecting them from a sudden shock to their incomes."



The department also cites Economic and Social Research Institute, Central Statistics Office and Central Bank research indicating that the gross median income of Irish households would have fallen by almost 20% in the second quarter of 2020 without the intervention of government supports including the PUP, TWSS and EWSS schemes.

"In practice, the income supports cushioned this income effect and were particularly effective for low income households," the department statement confirms.

The Government has already confirmed that Covid-19 income supports will continue until at least 30 June 2021.

"Any changes that may be made after June will be informed by matters such as the trajectory of the virus and the status of the vaccination rollout programme," the department concludes.