Impact of COVID on government welfare

Social Support for businesses and employees impacted by COVID-19

People all over the world have started to feel the real impact of COVID-19. In Ireland, the government has created different funding schemes for people who wish to claim from them. This is to help subsidize their income during these hard times. Businesses have also requested that they be allowed to start working again.

COVID 19 unemployment recipients rise to 600,000

During this pandemic, nearly 598,000 people have become dependent on the Covid-19 Pandemic Unemployment Fund. This is a sharp rise of 7000 from the week before. During this time there have been 52,000 people who have been given subsidized payment from the Temporary Wage Subsidy Scheme. While there is no requirement for this payment, officers from each branch have been “cross-checking” payments to check for “mis-claiming” by individuals.

Housing Alliance seeks permission to restart building works.

The Ó Cualann Cohousing alliance is seeking permission to restart building on a housing development in Ballymun, Dublin. Even though the cohousing alliance isn’t on the list of 35 housing developments which have been given permission to start building.

Covid-19 Welfare subsidies may be tapered

The Minister of Finance, Public Expenditure and Reform Mr Paschal Donohoe says that he will be tapering and changing the Covid-19 welfare subsidies at the end of the 12 week introduction period. He said that he would like to keep the public payouts safe, as well as giving the 40,000 companies who have availed the Welfare payouts a fighting chance. Especially with the unemployment rate standing at 22%, a sharp increase since February this year. 

Covid-19 unemployment payments to cost Exchequer over €5bn for three months.

The Economic and Social Research Institute says that the government will have to pay out 5 Billion Euros over the next three months. It warns that the cap on higher earners within the wage subsidy scheme may encourage firms to lay off these employees instead of retaining them. The ESRI estimates that some 600,000 jobs may be lost due to Covid-19 pandemic.

IMF provides debt relief to 25 poor countries

The International Monetary Fund has said that it will provide debt relief to some of the poorer countries affected by Covid-19. This is a bid to help free up some funds for the countries affected. The countries are nearly all in Africa but include, Afghanistan, Yemen, Nepal and Haiti as some of the other countries that will benefit. 

Many jobs have been lost due to Covid-19 pandemic. Although the governments have done everything they can to help taper the loss of jobs and income. There are still risks involved until the pandemic has subsided and the economy is restarted to full capacity. We might see more job losses and more reliance on the government in the near future.

Let us help you plan your business’s financial future during these uncertain times. Contact us today.