Ministers announce new raft of economic measures

20.11.2020 - 15:46
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 Mynd: RÚV
Government ministers have this afternoon announced a new raft of support measures to help individuals and businesses through the ongoing pandemic crisis.

The package of measures announced was broad, and includes new initiatives and the extension of existing ones. Some of the highlights include that the current system of top-up benefits to people working reduced hours will be extended until the end of May.

The basic rate of unemployment benefit will increase to 307,430 krónur a month, which is an additional 2.5 percent on top of the 3.6 percent proposed in the 2021 budget. Parents with two children receive an increase up to 344,322 krónur. And jobseekers will receive December bonuses of 86,853 krónur this year.

Unemployment benefit will continue to be six percent higher for every dependent child the claimant has, rather than the usual four percent.

Grants to companies forced to mothball due to lack of takings will be extended into next spring and the cap on the maximum number of employees a company can have to qualify for aid will be scrapped.

895 million krónur has been put aside to support vulnerable groups, and an extra 900 million for extra-curricular activities for children from low-income households. The December bonus for the parents of children with long-term illnesses will this year be 61,480 krónur.

Child benefits for low-earning parents will rise in 2021 to a maximum of 77,625 krónur a month for single parents who earn under 350,000 a month.

Recipients of disability allowances will receive a one-off, tax-free payment of 50,000 krónur on 18th December which will not impact any other income or benefits, including the December bonus which will this year be 61,000 krónur for individuals. Disability benefit will increase from the start of next year across the board, with the biggest increase for those who currently have the lowest income.

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Alexander Elliott
Project manager