Number receiving PUP down nearly 500,000 since peak, says Minister

The number of people receiving the pandemic unemployment payment (PUP) has fallen by almost 500,000 since a peak reached in May last year, the Minister for Social Protection Heather Humphreys has said.

The Department of Social Protection said on Wednesday that the numbers receiving the payment had fallen by 25,526 compared to last week and now stood at 114,612.

The Minister said the Covid unemployment payment was “always a temporary emergency support and as the emergency phase of the pandemic has now passed, it is the right time to start the process of winding the payment down”.

The number of people receiving the pandemic unemployment payment are in addition to the 179,761 people who were on the live register at the end of August.

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Ms Humphreys said that throughout the summer months there had been a “continuous steady decrease in the number of people relying on the pandemic unemployment payment”.

“The number of people in receipt of the pandemic unemployment payment has now fallen by almost 500,000 since the peak in mid-2020.

“The economy is now substantially reopened and it is really encouraging to see businesses actively advertising for and hiring new staff.”

Tapering

The Minister said since the introduction of the PUP in March 2020, almost one million people had been supported under the scheme at one stage or another.

“The tapering of the pandemic unemployment payment is happening in a gradual, phased manner between now and next February recognising the fact that some sectors of our economy are getting back to normal at a slower rate than others.”

“It is important that businesses continue to avail of the supports available through the Employment Wage Subsidy Scheme in order to help them rehire staff.

“In particular I would encourage those working in the music and entertainment industry to utilise the music and entertainment assistance scheme which remains opens for applications.”

The Department of Social Protection said that in line with the Government’s economic recovery plan, the PUP was gradually being reduced on a tapered basis over a six month period from September 2021 until February 2022 to align it with the standard jobseekers payments.

“Almost 20,000 students who had been receiving the pandemic unemployment payment and advised the department that they are or will be full-time students in the upcoming 2021/2022 academic year received their final payment last week on Tuesday, 7th September.

“The maximum weekly rate of €350 is now reduced to €300. The €300 rate is reduced to €250 and the rate of €250 has reduced to €203. These new payment rates were reflected in the payments received yesterday, Tuesday, 14th September.

“The process of moving from the lower €203 rate of pandemic unemployment payment to a jobseeker’s payment was due to begin in early September. This has now been deferred until after all sectors have started to re-open in line with the roadmap announced on Tuesday 31st August and all affected customers will continue to receive their pandemic unemployment payment until 26th October when the process of their transition to a jobseeker’s payment will begin.

“Work on the transition process will commence at the end of September when the department will write to all affected customers to outline the options available to them.

“Two further phases of rate changes are scheduled to take place from 16th November 2021 and 8th February 2022. As pandemic unemployment payment recipients go on to the €203 rate in each phase, they will be transitioned to standard jobseeker terms.”