THANKS BUT NO THANKS
Callous Tories claw back most of bonus from workers on tax credits
SOME hard-working Scots NHS staff could see their £500 “thank you” bonus cut by up to 90 per cent.
The SNP made the claim yesterday following analysis of the tax and benefits system.
First Minister Nicola Sturgeon announced last year that health and social care staff would receive a £500 payment for their efforts during the pandemic.
About 300,000 workers are expected to cash in when the bonus is paid next month.
Sturgeon has called on the UK Government to ensure the payment is not taxed.
But critics say the Scottish Government has the power to increase the £500 sum so the full original amount is received.
Research by the SNP claims some staff may end up pocketing only a fraction of the £500.
According to figures, a health worker on the Scots basic income tax rate could see £160 deducted in tax and National Insurance.
It is also claimed an individual on the 21 per cent intermediate rate would pay £165 tax on the sum.
However, the deductions are steeper for people who pay tax and receive mean-tested benefits.
For someone on the 21 per cent income tax rate and Universal Credit, the SNP say the “marginal deduction rate” (MDR) is 75.2 per cent and leaves a recipient with £123.95.
Similarly, a basic rate taxpayer on tax credits and housing benefit in the legacy system would have an MDR of 90.6 per cent and be left with £47.25, according to the figures.
Airdrie & Shotts MP Neil Gray, the SNP’s shadow work and pensions secretary, said: “It should be received in full without any deductions from Westminster. It is unacceptable that care home workers, NHS porters, healthcare support workers, nurses and paramedics claiming social security could see up to 90 per cent of this payment taken away by the Tory Government.
“Instead of taking money away from NHS and care workers, the Tories should follow Scotland’s lead and ensure workers across the UK get the recognition they deserve.”
HM Treasury said: “We’ve provided over £8.6billion of extra funding for the Scottish Government this year to support people, businesses and public services. The income tax on these payments is paid to Holyrood, not the UK Government and the Scottish Government has the powers and funding to cover the tax owed on the payment if it wishes.”