Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will take steps to ensure that recipients of the Scottish Government's health and social care £500 bonus payment who receive tax credits will be able to keep the full amount of that bonus payment.

COVID-19 is the biggest threat the UK has faced in decades. Key workers, including NHS staff and social care workers, have already demonstrated remarkable commitment to keeping the public safe in the continuing fight against the virus. The Government hugely values and appreciates these vital contributions to the COVID 19 response.

Under the longstanding rules any payments made in connection with an employment are chargeable to income tax and National Insurance Contributions. They also count as income for the purposes of calculating entitlement to certain benefits. This was the case when the Welsh Government announced similar payments earlier this year.

We’ve provided over £8.2billion of extra funding for the Scottish Government this year to support people, businesses and public services.

If it is their intention for NHS staff and social care workers in Scotland to benefit by at least £500, the Scottish Government has the powers and funding to gross up the payments.