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Coronavirus bonus: carers in Wales

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In June, the Welsh Government announced that it would be making a one-off flat-rate payment of £500 to social care staff who provided essential care to the most vulnerable during the challenging period of the coronavirus pandemic. However, as the payments will be treated as earnings, they will be subject to income tax and National Insurance contributions.

The Low Incomes Tax Reform Group (LITRG) is concerned that most eligible social care workers will not receive the full £500 and will be disappointed to find they receive significantly less. Those in receipt of universal credit (UC) are likely to be most heavily impacted, points out LITRG, with UC reducing by 63p for every £1 of additional net income.

Issue: 1499
Categories: News