The July Jobs Stimulus is a €7.4 billion stimulus package announced by the Government of Ireland on 23 July 2020 in response to the economic impact of the COVID-19 pandemic in the Republic of Ireland. The package includes 50 measures to boost economic recovery and get people back to work. The spending primarily includes €115 million for active travel, public transport and renewal of transport infrastructure, €75 million for primary and secondary schools to carry out reconfiguration works necessary to support schools' reopening in late August and September 2020 and €112 million in employment services and supports to deliver 47,500 training and apprenticeship places and a €450 million package of business supports including a €250 million Restart Grant to provide direct grant aid to businesses with up to 250 employees to help them with the costs associated with reopening and reemploying workers. The COVID-19 Pandemic Unemployment Payment, due to close on 10 August, will be extended until April 2021 and will be gradually reduced to €203 per week over that period based on the pre-pandemic earnings of the claimant as part of the package. From 17 September 2020, the scheme will close to new applications and the headline rate of payment will reduce from €350 to €300. The Temporary COVID-19 Wage Subsidy Scheme will be replaced by the Employment Wage Support Scheme in September 2020, which will be extended until April 2021.
Measures
The package includes the following measures.
Backing Ireland's Businesses
The Employment Wage Support Scheme will succeed the Temporary COVID-19 Wage Subsidy Scheme from September 2020 and will run until April 2021.
The Restart Grant for businesses will be extended and expanded. The grant will rise from a maximum of €4,000 to €25,000.
The waiver of commercial rates will be extended until the end of September 2020.
A €2 billion COVID-19 Credit Guarantee Scheme will be announced.
Financial certainty through the Enterprise Wage Support Scheme, Pandemic Unemployment Scheme and Rates Waivers.
€500 million investment in communities.
Investment in schools, walking, cycling, public transport, home retrofitting, and town & village renewal. €1,000 allowance to promote expenditure on cycling is being increased to €1,250, and to €1,500 for electric bikes. The period to avail of this is being reduced from every five years to four years.
Tax measures including a temporary 2% reduction in the standard rate of VAT from 23% to 21% for six months.
