Carer bonus held up by government tax wrangle

Consumers Feel The Pinch With Christmas Around The Corner

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.

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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.”

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The author Lee Peart


  1. I’d like to know when we are getting this £500 payment and have they made a decision on the payment being taxed?

    1. Hi Jacqui,
      The payment is currently being delayed because of the disagreement between the UK and Wales government over whether it will be taxed. We will update our readers as soon as there is a new development.

    2. Hi,
      I would like to know how I can claim this one off payment as my employer has advised me I qualify but sent me an email to an old address and will now not include me in this payment. Is there anything I can do to apply for this payment myself.
      I am still employed by them, went sending information via email I have always responded until they have sent this key information to an old email address. They tried to call me once which I picked up once I was back off my 10 day holiday.

      Hoping someone can help m
      Thank Jan

  2. I work for a children’s home as a social care worker / support worker and have been working all year round full time And I have been employed full time am I entitled and how do you claim
    I did read the article the payment had been delayed but until when?

  3. Imagine the interest on the 32million over the last three months it is all nonsense fairly easy really just pay out an extra quarter on top of the 500 pounds and then get the treasury to pay out the welsh government the amount paid in tax and national insurance. Oh and of course that nurses in public sector will not be getting a pay increase this year seems like nurses really are just worth a clap!,

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