The Government's Social Insurance Fund, which underpins state welfare and pension benefits, has plummeted from a surplus of just under €4 billion at the end of 2019 to a deficit of almost €1.2 billion due to the pandemic, the Department of Social Protection has confirmed.
The sharp reduction highlights the unprecedented government spending on Covid-related supports such as the Pandemic Unemployment Payment, coupled with a €920mn collapse in PRSI revenue from people out of work.
The special 0.5% PRSI rate for people on the Employment Wage Subsidy Scheme also contributed to the shortfall. The Social Insurance Fund (SIF) is funded by PRSI contributions.