Calls for full £500 for staff

A Strath politician has called on the UK government to ensure NHS workers are given 100 per cent of their £500‘thank you’payment.

First Minister Nicola Sturgeon announced the one-off bonus in November to NHS and care staff for their“extraordinary service”in 2020.

It is understood the policy will cost around £180 million.

Ms Sturgeon has called on Prime Minister Boris Johnson to make sure the payments are tax-free, while some have pointed out that income tax is devolved to Scotland.

Roseanna Cunningham, MSP for Perthshire South and Kinross-shire, has also called on the UK government to ensure that NHS workers receive their money in full.

She said figures from the House of Commons Library suggested many workers could end up losing over 90 per cent of their payment in tax.

She said:“What the Scottish Government cannot do is make that payment exempt from being included in calculations for taxation or benefits.

“Only the UK government have the powers to do that and, very disappointingly, they have refused to do so.

“These latest figures – from no less an institution than the House of Commons Library – show very starkly what that refusal is costing NHS and social care workers.

“Instead of receiving the full benefit of their well-deserved payment, care home workers, NHS porters, healthcare support workers, nurses and paramedics claiming tax credits and housing benefit could have as much as 90.9 per cent of the £500 payment clawed back by the UK government, leaving them with less than £50.

“These figures really should persuade even the hardest heart in Westminster to change their mind.”

Scottish Conservative MSP Murdo Fraser, who represents the Mid Scotland and Fife region and is also the shadow cabinet secretary for finance, said:“Roseanna Cunningham has simply got her facts wrong on this bonus payment to

NHS workers.

“It was established that this £500 NHS cash bonus is being funded from an emergency extra health grant provided by the UK government to tackle Covid-19.

“Income tax is devolved to Scotland, so any tax paid on this will go to the SNP government, not to the British treasury.

“If the SNP want these payments to be tax-free, they can simply gross them up, and recycle the tax in that way.

“Otherwise, they are expecting taxpayers in the rest of the UK to pay the taxes on these payments, which would be simply unfair.”

A Scottish Government spokesperson said that payments made in connection with employment are chargeable to Scottish income tax and to NICS unless explicitly exempt.