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Irish Independent

Government urged to address social welfare payments for workers facing temporary lay-offs due to US tariffs

A joint letter from the leaders of Ibec and Ictu to Social Protection Minister Dara Calleary asks that he urgently enhance financial supports for employees facing temporary lay-offs or short-time working 'during this period of heightened economic uncertainty'. Ibec CEO Danny McCoy and general secretary of Ictu, Owen Reidy said the current system of support is not fit for purpose and needs to be reformed. They said the new Jobseeker's Pay-Related Benefit scheme should be amended. The letter, which was copied to Taoiseach Micheál Martin, Enterprise Minister Peter Burke and Higher Education Minister James Lawless last week, said the new benefit that links jobseeker payments to former wages excludes workers whose hours may be cut. It said their organisations strongly supported the new Jobseeker's Pay-Related Benefit (JPRB) and believed that it is an important enhancement to the social welfare system. 'The new scheme, however, specifically excludes training activity during the first 26 weeks of receipt and also stipulates that recipients must be fully unemployed, i.e. those put on short-time working cannot avail of the scheme,' it said. 'While such workers can avail of the existing short-time working scheme, the daily rate payment is almost half of that available under the new JPRB.' They said many workers would be better off financially if made fully unemployed so that they can receive the higher weekly JPRB payment rather than continuing to work reduced days with their employer. 'This anomaly needs to be urgently addressed,' they said. 'We are concerned that many of our members are experiencing demand shocks as a result of the US tariffs and the wider economic uncertainty and supply-chain disruption that they are causing.' ADVERTISEMENT Learn more They said Ibec strongly believes that the State should seek to keep workers who face reduced working days or temporary lay-offs connected to their employers during this period of economic disruption. Workers should be encouraged to take up training and reskilling opportunities from the first day of unemployment, the business and worker representatives said. They recommended that the new JPRB scheme be amended to support those experiencing short-time working at a higher new scheme rate and that training be facilitated from day one of unemployment. 'Depending on demand, additional funding may also need to be allocated to support suitable training and upskilling initiatives for these workers,' the letter said. More than 2,500 people who lost their jobs have received up to €450 a week since the new pay-related jobseeker's benefit was rolled out from March 31. Those who have paid at least five years of PRSI are entitled to a weekly payment worth 60pc of their earnings, capped at €450. It is paid at this rate for the first 13 weeks out of work. A spokesperson for the Department of Social Protection said it provides support for workers on Short-Time Work under the Jobseeker's Benefit scheme. "This is an income support payment for those who have been temporarily placed on a shorter working week by their employer and which has worked effectively in response to challenges facing businesses," they said. "Pay-related Jobseeker's Benefit was introduced at the end of March. It applies to employees who become fully unemployed only."