PUP reduced work incentives for the newly unemployed.
95 percent of people receiving the Pandemic Unemployment Payment would be better off in employment, according to a new report.
The ESRI says income losses throughout the current crisis would have been twice the rate recorded if it wasn't for the governments social welfare supports.
Our report, 'COVID-19 and the Irish welfare system' is published today. In this paper we assess the impact of the withdrawal of the PUP and the Employment Wage Subsidy Scheme (EWSS) on various groups.
— Economic and Social Research Institute (ESRI) (@ESRIDublin) June 21, 2021
🔎 Read our press release for more information: https://t.co/lFngncYDwB pic.twitter.com/dVKR9FJWpw
However the study did find the PUP reduced work incentives for the newly unemployed.
Senior Research Officer with the ESRI, Claire Kean, says young people have particularly benefited from the scheme:
Household income losses would have been twice the rate recorded during the pandemic without the government social welfare supports, according to the ESRI.
A substantial proportion of younger people, including students, may face sharp reductions in income when schemes such as PUP and EWSS are removed.
— Economic and Social Research Institute (ESRI) (@ESRIDublin) June 21, 2021
Read and download our latest report 'COVID-19 and the Irish welfare system' here: https://t.co/V6c9NhPHGQ pic.twitter.com/aBWqcHw2SJ
Claire Kean, says there are some cases where the PUP reduces people's incentive to work:
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