Cost of social welfare Christmas bonus balloons to about €350m

Budget package set to increase the number of doctors, nurses, gardaí and teachers

Recipients of the pandemic unemployment payment (PUP) will receive the Christmas bonus this year provided they have been on the scheme for at least four months.

Following discussions on Monday night between Minister for Public Expenditure Michael McGrath and Minister for Social Protection Heather Humphreys, the Government will today signal the move.

The total cost of the social welfare Christmas bonus this year is now expected to be in the region of €350 million, far in excess of the €279 million paid out last year.

Hospital Report

Ordinarily qualification for the bonus is restricted to persons on long-term welfare payments and those on the live register for 15 months or more. Sources confirmed that in light of the unprecedented circumstances the Government is reducing the eligibility criteria to four months.

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Applicants who had previously signed off PUP and subsequently had to go back on the payment can combine periods of payment to meet the requirement.

It has been estimated that 90 per cent of the current 228,000 PUP recipients will be eligible if they remain on the payment until early December, when the Christmas bonus is paid.

As an exceptional once-off measure in 2020, those on jobseekers’ payments will also receive the bonus if they have been on the scheme for four months instead of the regular 15 months.

The criteria will revert to normal next year.

The Government is to sign off a wide-ranging budget package to support businesses and sectors affected by the Covid-19 pandemic, while increasing the number of gardaí, doctors, nurses and teachers.

The Government will also move to bolster the arts sector with a range of new support schemes and grants designed to counteract the damage caused by Covid-19. It is understood the Arts Council will receive funding of more than €120 million as part of this.

There will be a separate live entertainment scheme worth “tens of millions” for venues that have had to cancel gigs because of restrictions. Under the scheme commercial venues can claim a minimum of €10,000 in light of a cancelled event.

Another scheme worth about €5 million will be rolled out in a similar vein but this will be in place for school, college and local theatre events that are affected by the pandemic.

Drugs funding

In health there will be a spending boost of €4 billion. It was also agreed on Monday that some €50 million would be put aside to fund new drugs for thousands of patients.

Separately, Minister for Justice Helen McEntee will seek to secure funding as part of the estimates process to replace 70 temporary Garda vehicles which have been used throughout the pandemic. Ms McEntee has also secured funding for an extra 600 gardaí, and another 500 civilian staff.

In housing, some €500 million will be allocated in new funding, with much of this directed towards the construction of social housing by local authorities and approved housing bodies on public lands.

Minister for Housing Darragh O’Brien is also expected to receive approval for a shared equity scheme designed to facilitate home ownership.

Meanwhile, there will be an increase of €120 million in the international protection budget, overseen by Roderic O’Gorman, which will be allocated to improving standards in direct provision and implementing the recommendations of a white paper on the area, due by the end of the year.

In education, Minister of State for Special Education Josepha Madigan has secured funding for 1,200 additional special class places. There will be 1,000 extra special needs assistants and 400 additional special education teachers.

It is expected there will be increased funding to bring down the pupil/teacher ratio in small schools, and there will be an increased allocation to the Deis programme as some of the students most impacted by Covid are also those already suffering from educational disadvantage.

Jennifer Bray

Jennifer Bray

Jennifer Bray is a Political Correspondent with The Irish Times

Jack Horgan-Jones

Jack Horgan-Jones

Jack Horgan-Jones is a Political Correspondent with The Irish Times

Pat Leahy

Pat Leahy

Pat Leahy is Political Editor of The Irish Times