Councillors ask MPs to lobby UK Government to not to tax £500 social care payment

Local MPs have been urged to back the Welsh Government’s calls to support care workers in Wrexham.

Some Wrexham councillors have written to Wrexham MP Sarah Atherton and Clwyd South MP Simon Baynes asking them to ‘lobby their Conservative UK Government’ to ensure frontline care staff are not taxed on the recently announced £500 extra payment.

While the Welsh Government will fund the payment, the UK Government and HMRC decide whether carers have to pay tax on it, with the First Minister at the time saying, “We are urging the UK Government and the HMRC to make an exception in these truly exceptional circumstances.” At the time of the announcement it was also stated Welsh Government was also working with the Department for Work and Pensions to make sure the payment does not impact on people’s benefit entitlements.

The letter from Cllr Dana Davies, leader of the council’s opposition Labour Group, said: “You will both be aware that the Welsh Government recently announced it will fund a £500 extra payment for all social care workers in Wales in further recognition for an often under-valued and overlooked workforce.​

“The payment will be available to some 64,600 care home workers and domiciliary care workers throughout Wales, many of them living in your constituencies of Wrexham and Clwyd South.​
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“The First Minister has called on the UK Government not to tax the extra payment, enabling social care workers to keep the full amount. The Welsh Government is also working with the Department for Work and Pensions to make sure it does not impact on people’s benefit entitlements.​

“Local carers are among our key workers on the frontline of the fight against coronavirus and I hope you will agree that their commitment and dedication to those they care for deserves to be rewarded.

“We, the Wrexham Council Labour Group, ask you to make urgent representations to the UK Government and HMRC and call on them to ensure this £500 is not taxed so that this vital workforce receives the full payment in recognition of their monumental efforts in these truly exceptional circumstances.

“We look forward to your response and confirmation of your full support of our local care workers.”