Wales to hand out tax-free covid bonus

Related news

Collective bargaining promised for social care

National developments for social work

“Mayday”: voices from NHS emergency departments

Plea to see social work as ‘backbone’ of health & care

Chief Medical Officer: ‘Critical connections’ priority

New social care minister appointed

Image by Welsh Labour
Welsh Health Secretary Vaughan Gething

by Henry Anderson

Friday 19th March 2021

The Welsh government is to cover tax and National Insurance on a covid-19 thank you payment for health and care staff it announced yesterday.

Ministers in Scotland promised a similar £500 bonus but did not commit to covering tax deductions and are now being called upon to follow the lead of their Cardiff counterparts.

When she unveiled the initiative at the SNP conference late last year, Nicola Sturgeon called on the UK government to exempt the payment from tax, which has so far been unsuccessful.

In Wales the government has promised a one-off payment of £735, which will leave most recipients with £500 after tax.

More than 200,000 staff across social care, NHS Wales, primary care services and deployed students will receive the payment.

It follows a one-off payment for home care and care home workers in Wales in the early stages of the pandemic.

Although it was announced more than three months earlier, unions and charities have criticised the Scottish payment over “inexplicable” eligibility gaps.

More than 40,000 signed a petition calling for agency and student nurses to receive the payment, while Unison has voiced concerns about the impact the reward could have on lower paid staff’s benefits.

Meanwhile learning disability nurses and addiction support workers employed by one major charity are being left out.

GMB Scotland Secretary Gary Smith called for the Scottish government to “follow the Welsh example” and uprate the bonus.

Scottish Labour deputy leader and health and social care spokesperson Jackie Baillie said: “Tax is devolved in Scotland so if the SNP want to make sure NHS staff get the full £500 bonus, they could have just given them more.” 

A Scottish Government spokesperson said: “From the outset we’ve been clear that the power to exempt the payment from income tax rests with the UK government and we’re deeply disappointed that they have not done so despite our repeated requests.

“We continue to call on the UK government to do the right thing and bring forward these exemptions.”

In an update issued today, the Scottish government said the majority of care staff would be receiving the £500 payment in April.

Read more: NHS pay rise described as ‘disappointing’; Analysis: The case for a £15/hr social care wage; ‘Breakdown in trust’ over NHS pay negotiations

Sign up to our bulletin for key health & social care updates straight to your inbox.