‘Enough in NIS coffers’ amid record jobless claims

As a record 30,000 people claim unemployment benefits from the National Insurance Scheme (NIS), Prime Minister Mia Mottley has insisted the country has “sufficient assets” to meet the demand.

The PM, the lead Minister of Finance, said that the scheme had already paid out close to $12 million dollars to over 10,000 workers since the virus spurred economic hardship.

She told the nation tonight: “In the last five weeks, the NIS has received 29,076 new claims for unemployment benefits. That is a staggering number. More are still likely.

“My team has worked hard to remove the red tape that would otherwise have delayed payment to this group of Barbadians and many have already received their first cheque last week and others will continue to do so this week.

“Indeed, as of Monday, the NIS has paid 10,989 persons the sum of $11,191, 277.10 in unemployment benefits and that will carry them for a four-week period.”

The Finance Minister said that Government was committed to ensuring that the NIS could honour the thousands of claims.

She declared: “The NIS will continue to dispatch the claims as far as possible and as quickly as possible. You will ask yourself does the NIS have more than sufficient assets to cover this yes we do.

“We have the sufficient assets to meet these demands, but many of these assets are not liquid or in the right divisions.

“The Government will support the NIS whether through existing funds being held at the Central Bank from loans we have received under policy based lending or by purchasing the bonds that the NIS holds to the tune of $250 million.

“In essence, we will prepay the NIS early and finance it through the issuance of a Pandemic Solidarity Bond to allow the NIS to move forward. We are [workers] will go back out to work while some of them are likely to be there for the long haul.”

Mottley pointed out that the National Insurance System is the first line of defense for most households.

She said: Those who are laid off by their employer get unemployment benefits for six months. Those on short weeks gets 60 percent for the days they are not working. So if you work three days 60 per cent of the other two days are being paid to you. I announced these measures as I said on March 20 earlier in Parliament.”

The Prime Minister also reminded those who did not receive NIS that some relief can be found through the Household Survival Programme.

She said: “Let me remind you that I had announced a Household Survival Programme ($20 million) to be split between $10 million for Welfare to accommodate increased rates for benefits and another $10 million to be managed for those households who do not receive NIS benefits.

“This would be supplemented by the Adopt our Families Programme that has already received just Under $900,000.

“If as a result of COVID-19, a household is left with no one employed, we will provide a minimum income for these households.

“We will make available through the welfare department an amount up to $600 per month during this period of hardship.

“The Welfare Department will work closely with the Household Mitigation Unit in the Prime Minister Office to facilitate effective implementation. We will provide this support to the 2,000 most vulnerable.”