NHS staff on UC could lose most of their bonus
NHS and care workers could end up losing part or even all of their bonus for working through the pandemic if their household claims Universal Credit, officials admit.
The lifesaving workers were promised the bonus last month for their remarkable commitment and courage.
But the £735 one-off payment – which will actually work out as about £500 for most people after deductions – could be missing a large chunk of it thanks to UK Government rules about benefits.
Because Universal Credit is means-tested, the amount you get is determined by how much you earn. The more you earn, the less you get.
So, a bonus like the Covid payout for health workers is considered to be the same as earnings and is treated in the same way as any other earnings.
For every additional pound earned by someone on Universal Credit, whether through higher wages, additional hours or bonus payments, benefit entitlement reduces by 63p, not the full £1. This means that workers “should retain at least part of their bonus”.
News of possible deductions to the one-off payment has been met with dismay and seething disappointment from NHS workers.
One nursing assistant said: “I didn’t see my kids for six weeks at the start of the pandemic. Not only did I sacrifice my time with them but I was also risking my life. This bonus is getting taxed at source so it’s more than £200 less than the payment that’s been given.
“And now I could end up losing more of that because as a working single parent I claim some benefits. It feels like a massive slap in the face, to be honest.”
Another NHS worker said she had only been receiving Universal Credit since July 2020 due to her personal circumstances changing.
She said that despite working throughout the pandemic she would see her health workers’ bonus reduced to just £195 after tax, national insurance and Universal Credit take their share.
She said she “could not believe” this was happening and that it made people like her feel as though they “don’t deserve” to receive their bonuses, despite their hard work.
It is estimated the payment will benefit 221,945 people in Wales, including 103,600 social care staff, 90,000 NHS Wales staff, 2,345 deployed students and 26,000 primary care staff, including workers in pharmacy, general practice, dental and optometry.
It is expected the majority of staff will get this bonus in their May pay packet.
A spokeswoman from the Welsh Government said health workers could choose to receive the payment in instalments over a number of months.
However, the NHS worker said she didn’t believe this would help her, adding: “They’d just take it back off me over a longer period.”
A Welsh Government spokeswoman said: “We are not able to exempt the payment from benefits, as this would be a function of the UK Government. Staff can choose to receive the payment in instalments over a number of months.”
A spokeswoman from the UK Government Department for Work and Pensions said: “We thank all NHS staff who have worked tirelessly throughout the pandemic. Universal Credit is a meanstested benefit – bonuses are treated as earnings and payments are gradually reduced as someone’s earnings increase.”