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Forum Home  →  Discussion  →  Covid-19 issues  →  Thread

Scottish £500 COVID bonus to NHS and care workers

Stuart
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LITRG has warned that, if the new payment is taxed -

‘…  some of the lowest paid workers stand to benefit the least…

... because the payment is likely to be liable for tax as earnings, NHS and care workers receiving universal credit could see their benefits payments reduced as a result of the one-off payment. For every extra £1 that a person receiving Universal Credit earns over and above their allowance, their benefit entitlement is usually reduced by 63p. It means that someone earning the median Scottish salary of £25,200 who also receives universal credit, could see the value of their bonus reduced from £500 to £123.95 once taxes and benefits are taken into account.

 

Gareth Morgan
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Matches the Greggs’ bonus issue earlier this year.  See https://benefitsinthefuture.com/greggs-300-bonus-or-booby-prize/

bigbill
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Dumfries Welfare Rights

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For many still on the old benefits getting that extra £500?

Housing Benefit will take 65%
Council Tax will take 20%
Tax Credits will later take 41%

Nothing added for any extra Tax and National Insurance that may be taken as well

 

[ Edited: 3 Dec 2020 at 09:07 pm by bigbill ]
Ros
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Responding to written question in parliament on whether government will ensure that £500 bonus is disregarded for universal credit, DWP Minister Will Quince says -

Universal Credit (UC) is designed to ensure that people are better off in work by reducing their UC by less than they are earning. Bonuses are treated as earnings in Universal Credit and the taper is applied when the UC award is calculated.’

Elliot Kent
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Ros - 08 December 2020 02:01 PM

Responding to written question in parliament on whether government will ensure that £500 bonus is disregarded for universal credit, DWP Minister Will Quince says -

Universal Credit (UC) is designed to ensure that people are better off in work by reducing their UC by less than they are earning. Bonuses are treated as earnings in Universal Credit and the taper is applied when the UC award is calculated.’

That’s a very long way of saying “no”.