A £500 carer 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. It was extended to care home ancillary staff this month but no payments have yet been made.
Mr Gething said: “It’s deeply frustrating for not just the government but, in particular, for care home 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 Welsh Government spokesperson said: “We expect the thank you payments to be made shortly.
“In the meantime, we are continuing to discuss the tax and National Insurance implications with HMRC and the UK government. We are deeply disappointed that they are still insisting on taxing the thank you payment we are making to 64,000 social care workers across Wales.”
A UK government spokesperson responded: “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.”