£500 ‘thank you’ could shrink to £125

Here are the payments care staff are likely to receive from the £500 bonus after tax:

A £500 “thank you” cash bonus promised to care workers could be reduced to as little as £125 after tax, it has been revealed.

First Minister Mark Drakeford announced on May 1 that the one-off payment would be given out as a “thanks” to those who had carried out their caring duties throughout the pandemic.

It was later extended to kitchen and domestic staff, as well as domiciliary care workers and personal assistants, to recognise their efforts during the crisis.

However, Unison Cymru Wales claims that any tax paid on the £500 will count against Universal Credit benefits, which the majority of care workers receive because their pay is so low.

It means their “special payment” could be reduced to just £125.

The union has written to Prime Minister Boris Johnson asking him to “do the right thing” for care workers by waiving tax and National Insurance Contribution (NIC) deductions.

Unison Cymru Wales regional secretary Tanya Palmer said: “The Covid lockdown has shone a light on the tremendous work undertaken by thousands of mainly low-paid female care workers in Wales.

“They to care continued for our loved ones under difficult and frightening circumstances.

“The Prime Minister clapped for care workers but they will feel cheated by Boris Johnson if tax and Universal Credit deductions leave them with as little as £125.

“This bonus was meant for hardpressed care workers and their families, not to disappear into the Treasury’s coffers. Unison has called on the Prime Minister to think again.”

Speaking during Thursday’s press conference, Finance Minister Rebecca Evans said she had received a response from the UK Treasury on this matter which “wasn’t positive”.

She said: “We do have some last avenues that we are going to pursue with them, but we do intend to get those payments out to people as soon as we possibly can.”

Earlier this month a Treasury spokesperson said: “We value the contribution of social care workers, particularly during the current crisis. “We also understand that the collective response to Covid-19 needs to be UK-wide, which is why alongside our UK-wide support schemes we’ve provided over £2.2bn of funding for the Welsh Government to support people, businesses and public services. “We are working with the Welsh Government to determine the exact scope of the proposed bonus. Payments made in connection with employment are, however, chargeable to income tax and NICS unless explicitly exempt.”

As part of its letter to the Prime Minister, Unison also called for sustained investment to lift care workers out of in-work poverty and provide dignity for clients. The union also raised the unexplained absence of Wales’ share of the Infection Control Fund. gross income over £12,500 £100 £60 gross income between £9,504 and £12,000

£60 gross income under £9,004 £0 £0

£214.20 £0 £277.20

£315