Cuts to the Temporary Wage Subsidy Scheme (TWSS) by the government next week will lead to permanent lay-offs by businesses in struggling sectors, Sinn Féin’s Pearse Doherty TD has warned.
The Donegal TD has called on the government to end its one-size-fits-all removal of wage supports for businesses by extending the TWSS until the end of October.
The scheme is due to cease at the end of August – to be replaced by the Employment Wage Subsidy Scheme (EWSS) from 1st September.
Teachta Doherty said: “There is no one-size-fits-all approach to the reopening of our economy, with the government requiring businesses in certain sectors and counties to remain closed until September.
“Despite this, the government is pushing ahead with the removal of supports for businesses next week.
“From 1st September – while so many businesses remain closed as a result of public health measures – the Temporary Wage Subsidy Scheme will be replaced with a scheme that will cut support by fifty percent for most employees and remove all support for the lowest paid workers.
“For the most affected sectors and businesses, this will lead to job losses.
“This is made worse by the confirmation from Revenue that employers will be waiting up to six weeks to receive payment of payroll subsidies under the revised scheme; placing added pressure on employers and workers.
“In our submission to the government for the July Stimulus, we called for the TWSS to be extended for highly affected sectors.
“On 11th August, I wrote to the Minister for Finance asking that the TWSS be extended for highly affected sectors, instead of a blanket removal of supports that will cost jobs in sectors that have been forced to remain closed. I am awaiting his response.
“A targeted approach to wage supports, reflecting the fact that public health measures target certain sectors more than others, makes sense. It will also save jobs. It is not too late for the government to change course.”