Economic Recovery Plan 2021 Explained

The Economic Recovery Plan 2021 is a €3.5 billion stimulus package announced by the Government of Ireland on 1 June 2021 to achieve rapid job creation and economic growth after the COVID-19 pandemic.^{[1] [2] [3]} The plan sets out a new phase of supports, investment and policies for a new stage of economic recovery and renewal, with new measures for businesses and affected sectors, and details for existing emergency pandemic financial supports including the COVID-19 Restrictions Support Scheme, Employment Wage Subsidy Scheme and Pandemic Unemployment Payment, giving certainty to businesses and employees and for those who need it most.^{[4] [5] [6]}

Four pillars of the plan

The Economic Recovery Plan is broken down into four pillars:^[7]

1	Ensuring our public finances are sustainable for a lasting recovery^[8]
2	Helping people back into work by extending labour market supports and through intense activation and reskilling and upskilling opportunities, driven by Pathways to Work 2021–2025
3	Rebuilding Sustainable Enterprises through targeted supports and policies to make enterprises more resilient and productive
4	A Balanced and Inclusive Recovery through strategic investment in infrastructure and reforms that enhance our long-term capacity for growth, balanced regional development and by improving living standards^[9]

– Reaching 2.5 million people in work by 2024.^[10]

Extension of supports

• Employment Wage Subsidy Scheme (EWSS) and Pandemic Unemployment Payment (PUP) extended for the rest of 2021 with phased adjustments

Practical supports such as individual advice, CV preparation and work placements

• Expanded Jobs Plus Scheme to 8,000 places
• Workplace Experience Programme, 10,000 participants by 2022

Upskilling and reskilling

• Accelerated availability of 50,000 extra education and training places
• Investment of €114m in education and training through Solas Recovery Skills Programme
• 10,000 additional apprenticeships per annum by 2025

– Helping business to recover and embrace new opportunities.^[10]

Extension and enhancement

• Extension and enhancement of the COVID-19 Restrictions Support Scheme (CRSS)
• Extension of the Commercial Rates Waiver and Debt Warehousing Schemes
• New Business Resumption Support Scheme
• SME and Entrepreneurship Growth Plan – 2,000 additional SMEs to begin exporting by end 2025
• IDA 2021-2024 Strategy – aims to win 800 total investments to support creation of 50,000 jobs

Support and planning for sectors that have been particularly impacted by the pandemic

• Lower Tourism VAT rate of 9% extended to 1 September 2022
• Live Performance Support Scheme (LPSS)
• Music and Entertainment Business Assistance Scheme
• New events sector support scheme
• Fáilte Ireland initiatives including Business Continuity Scheme
• Roadmap for Aviation Recovery

Building resilient, productive and innovative businesses for the future

• Digital Transformation of Enterprise Fund
• National Artificial Intelligence Strategy
• Technological University Fund
• National Grand Challenges Programme

– Building on the lessons of the pandemic.^[10]

Supporting a digital and green economy

• €915 million of funding under the European Recovery and Resilience Facility
• Retrofit Loan Scheme

Balanced regional development

• Updated National Development Plan
• Brexit Adjustment Reserve (over €1 billion)
• Remote Working Strategy

Fair recovery

• Social dialogue
• Statutory sick pay
• Wellbeing Framework
• Just Transition

Key elements of the plan

• A substantial extension of the Employment Wage Subsidy Scheme (EWSS), the Pandemic Unemployment Payment (PUP), and the COVID-19 Restrictions Support Scheme (CRSS), and considerable enhancement of both EWSS and CRSS^{[11] [12]}
  • The Employment Wage Subsidy Scheme will be extended beyond 30 June until 31 December 2021^{[13] [14]}
  • The Pandemic Unemployment Payment will be extended in full for existing claimants beyond 30 June to 7 September. The scheme will close to new applicants from 1 July in recognition that, at that stage, there should be no new job lay-offs that are directly attributable to public health restrictions^{[13] [15]}
    • The current weekly rates of support will be gradually reduced over three phases by €50 increments. The first phase of rate changes will apply from 7 September provided progress on reopening continues. Two further phases of changes will take place over the following months, on 16 November and 8 February, if progress continues as expected^{[13] [16]}
    • PUP claims for students will be extended until the start of the 2021/2022 college year (final payment on 7 September). In addition, €10 million in assistance will provide supports for the forthcoming academic year for students impacted by COVID-19^[13]
• Complemented by a range of initiatives including extension of Commercial Rates Waiver, new additional Business Resumption Support Scheme, and extension of Tax Debt Warehousing Scheme^{[11] [12]}
• Continuing to provide supports for worst-affected sectors including aviation, tourism and events as they continue to reopen, including the extension of 9% VAT rate for tourism and hospitality sector, supports for live entertainment and events sector, and a roadmap for the aviation sector^{[11] [12]}
  • A roadmap for the recovery path for the aviation sector is rooted in the reopening of international travel, supports for workers and sectoral specific supports^[17]
    • Non-essential travel can return from 19 July and for travel within the European Union area, Ireland will be operating the EU Digital COVID-19 Certificate^[17]
  • As part of Government's support for the tourism sector, the lower tourism and hospitality VAT rate of 9% will be extended to 1 September 2022, and Fáilte Ireland will continue its support initiatives including through its Business Continuity Scheme or equivalent schemes^[17]
• Strategic investment that will drive the digital and green transition, as well as supporting social and economic recovery and job creation^{[11] [12]}
• Overarching ambition to exceed pre-crisis employment levels by reaching 2.5 million people in work by 2024^{[11] [12]}
• Help people back into work, and into new sustainable job opportunities through increased activation, and reskilling and upskilling opportunities^{[11] [12]}
• A pathway to a strong, resilient economy, aligned with the Government's green and digital ambitions^{[11] [12]}
• Learn lessons from the pandemic by building a balanced and inclusive recovery, which leverages new ways of working, and by improving labour market supports and living standards^{[11] [12]}
• Ensuring sustainable public finances for a lasting recovery^{[11] [12]}

See also

• July Jobs Stimulus

External links

• Gov.ie – Economic Recovery Plan

Notes and References

1. News: Government announces €3.5 billion plan to get the economy through Covid. TheJournal.ie. Órla. Ryan. Gráinne. Ní Aodha. 1 June 2021. 1 June 2021.
2. News: Economic recovery plan 'the opposite of austerity', says Taoiseach. The Irish Times. Jack. Horgan-Jones. Cliff. Taylor. Pat. Leahy. 1 June 2021. 1 June 2021.
3. News: 'Enormous damage to be undone' - recovery plan unveiled. RTÉ News and Current Affairs. 1 June 2021. 1 June 2021.
4. Web site: Launch of the Economic Recovery Plan 2021. Department of the Taoiseach. gov.ie. 1 June 2021. 1 June 2021.
5. News: National Economic Plan: Property tax, PUP and metropolitan railway lines – everything we know. Irish Independent. Philip. Ryan. Brendan. Kelly Palenque. Hugh. O'Connell. 1 June 2021. 1 June 2021.
6. News: VAT and grant boosts for businesses despite PUP and wage support cuts, Micheal Martin confirms. Irish Mirror. Ferghal. Blaney. 1 June 2021. 1 June 2021.
7. Web site: Launch of the Economic Recovery Plan 2021. merrionstreet.ie. 1 June 2021. 1 June 2021.
8. Web site: Pillar 1: Ensuring Sustainable Public Finances. Department of the Taoiseach. gov.ie. 1 June 2021. 1 June 2021.
9. Web site: Pillar 4: A Balanced and Inclusive Recovery. Department of the Taoiseach. gov.ie. 1 June 2021. 1 June 2021.
10. News: Economic Recovery Plan: Here are the Covid-19 supports in place as society reopens. TheJournal.ie, Government of Ireland. 1 June 2021. 2 June 2021.
11. Web site: Gov.ie – Economic Recovery Plan. Department of the Taoiseach. gov.ie. 1 June 2021. 1 June 2021.
12. News: Covid Ireland: 9 key points from the economic recovery plan and how it will affect your pocket. Irish Mirror. Marita. Moloney. 1 June 2021. 1 June 2021.
13. Web site: Pillar 2: Helping People Back into Work. Department of the Taoiseach. gov.ie. 1 June 2021. 1 June 2021.
14. News: From PUP changes to how to spend the EU billion - here's what's in the government's Covid stimulus plan. TheJournal.ie. Gráinne. Ní Aodha. Órla. Ryan. 1 June 2021. 1 June 2021.
15. News: At a glance: What's in the Economic Recovery Plan. RTÉ News and Current Affairs. Gill. Stedman. 1 June 2021. 1 June 2021.
16. News: Taoiseach confirms plans to phase out PUP from September. Irish Examiner. Daniel. McConnell. 1 June 2021. 1 June 2021.
17. Web site: Pillar 3: Re-building Sustainable Enterprises. Department of the Taoiseach. gov.ie. 1 June 2021. 1 June 2021.