Carer bonus held up by government tax wrangle


A £500 bonus for carers is being held up by a tax wrangle between the Welsh and UK governments.

Health Minister Vaughan Gething told the BBC the Welsh government was “looking to exhaust every avenue” to persuade the UK government to not tax the payment.

The one-off payment in recognition of carers’ contribution during the coronavirus pandemic was announced over two months ago, but no payments have yet been made.

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Gething said: “It’s deeply frustrating for not just the government but, in particular, for care workers themselves.

“We’re still trying to get the UK government to a position where they won’t take tax and National Insurance off these payments.”

A UK government spokesperson said: “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.

“The Welsh government has the powers and funding to gross up the payment, if its intention is for social care workers to benefit by at least £500.”

Last month, trade union Unison wrote to Boris Johnson after claiming care workers could end up with only a quarter of the £500 bonus from the Welsh Government.

Unison calculated that a carer earning above £12,500 would lose £100 to tax and £60 in National Insurance.

The increase in earnings of £340 would cause a knock-on effect with Universal Credit, which would reduce by £214.20, leaving just £125.80 of the original £500 award, the union said.

Tags : bonusrecognitiontaxWelsh government
Sarah Clarke

The author Sarah Clarke


  1. As a carer, I find this not worth having. At stated in the article by the time national insurance and tax contributions are taken out and then universal credit is reduced because of it, there’s not much left to be rewarded with. This was intended to be a gift for us working hard and being recognised for once. But the uk government have basically pushed us to the bottom of the pile again and made us irrelevant again.

    1. I’m also a carer and I totally agree I said on the day he announced we were to get it we probably wouldn’t and hey here we are getting a pittance of it ..

    2. I am a support worker, working part time, I worked all throughout the virus, I worked extra hours as well, long 12 hour shifts, away from my family, risking my health.
      As a single parent working part time I am also receiving universal credit, if I claimed the bonus it would be taken straight off my universal credit, which is why I have not bothered to apply for it! I find it absolutely disgusting that you can call this a bonus, it’s not a bonus if it’s taken off you in other earnings which would mean you get no extra than you would in your usual monthly income!
      To be honest I was absolutely fuming, but I’m over it now, I’m not about to let some jumped up posh Nobs in suits who haven’t got a clue about the real world get to me for to long. They are not worth getting angry over!
      This is what our government does to its people, why are they even in power? Why are they allowed to get away with shit like this? Maybe if more of us stood up for what’s right, this wouldn’t happen!

  2. I am a mobile carer, I have work through the coronavirus, I have been doing some end of life too, I went to college for two years, and work very hard, love my job, but we are never recognised for what we do, we are the elephant in the room, the company I work for is fed up of how mobile carers are treated and spoken about, we all got an email on the 3rd of August saying we are all getting a pay rise, so our government can keep there money,

    1. We were the lowest paid before Covid,the lowest paid during and we’ll still be the lowest after,yet another kick in the teeth,everyone I know is seething and seeking alternative employment.

  3. The British Government are a joke and if it was them getting any kind of bonus payment they would have made sure it was paid by now..never enough reward for the work us carers do.

    1. We were the lowest paid before Covid,the lowest paid during and we’ll still be the lowest after,yet another kick in the teeth,everyone I know is seething and seeking alternative employment.

  4. Hi I thought this bonus was for the workers who actually worked through the covid 19 pandemic. But that is not the case.,you just needed to be employed, so if you refused to work. If you were furloughed, if you were off on maternity.,you can still claim it, no bonus for those who actually worked

  5. Unpaid carers work 24/7 front line…..I work 4 days as a social worker, and am a full time carer. I am not able to claim carers allowance. Yet, I have a PA (like many other Parents) who have not worked within the said period for bonus and will now receive a payment in addition to the wages being paid when they were not working or furloughed). In effect, doing my job (but at home) and providing care that may have been previously provided by the PA. This is costing LA thousands!!!!!! The Welsh Government have said in a statement that they ‘recognize’ the value and worth of carers. I am just wondering how they do this – when clearly the last 6/7 months have been stressful for all. However more so for Parents working at home and providing additional care and support. . Unpaid carers are undervalued, unsupported and generally ignored.

  6. It is absolutely disgusting In England we have not even been offered the payment, We have not been recognised AT ALL for the risk we faced nor the things we witnessed!
    To those that are going to get it, It is not fair to tax it or for them to receive a penny less than promised!!
    Our Care workers are let down !!!!

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