Swansea West MP, Geraint Davies, has called for the government to exempt Welsh carer’s Covid-19 bonus from tax.
The £500 bonus to every social care worker and domiciliary care worker in Wales has been created by the Welsh Government in recognition of the work being done by these key workers.
In a letter to the Chancellor MPs are calling on him to exempt this bonus from tax and benefit deductions.
Mr Davies said: “Our care workers are on the front line of responding to the coronavirus pandemic here in Swansea and across the country.
“Their tireless effort in providing essential care and support to thousands of people across the country is often overlooked, and they are among the lowest paid workers in the UK.
“I welcome the £500 payments announced by the First Minister. While no amount of money can properly reflect the care and compassion that they are providing it will go some way to recognising how much we as a society value their work.”
The bonus for the 64,000 care workers in Wales was announced recently by First Minister Mark Drakeford in recognition of the “greater degree of risk” they faced due to the pandemic.
Under current rules for such cash bonuses they face being taxed at the normal rates, unlike the tax free bonuses that the armed forces receive for operational tours.
Mr Davies said: “In the current circumstances it is wholly unjust that the bonuses of these carers be taxed at the normal rate.
“I am therefore calling for the Chancellor to make sure that no one who receives this payment is disadvantaged in any way in respect to their tax status or social security entitlements.
“All workers must receive this award in full.”