Scottish £500 COVID bonus to NHS and care workers

LITRG has warned that, if the new payment is taxed –

‘…  some of the lowest paid workers stand to benefit the least…

… because the payment is likely to be liable for tax as earnings, NHS and care workers receiving universal credit could see their benefits payments reduced as a result of the one-off payment. For every extra £1 that a person receiving Universal Credit earns over and above their allowance, their benefit entitlement is usually reduced by 63p. It means that someone earning the median Scottish salary of £25,200 who also receives universal credit, could see the value of their bonus reduced from £500 to £123.95 once taxes and benefits are taken into account.

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