Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate he has made of the cost to the public purse of not taxing the £500 payment for care workers announced by the Welsh Government.

HM Revenue and Customs are working with the Welsh Government to understand the nature of the payments and the potential recipients. These details are required to determine the cost to the Exchequer.

Under the longstanding rules of income tax, any payments made in connection with an employment are chargeable to income tax and National Insurance contributions.

This is consistent with the Government’s approach across different forms of financial support during COVID-19, including payments made under the Coronavirus Job Retention Scheme and the Self-Employment Income Support Scheme, which are liable to tax.