To ask the Minister of Health (i) whether the £500 special recognition payment for Health and Social Care Staff is considered income; (ii) what tax and National Insurance deductions will be applicable as a result; (iii) how the payment will affect any income-related benefits of the recipient; and (iv) what the rules are for similar schemes in England and Wales relating to the same issues.

Yes, the £500 special recognition payment for Health and Social Care Staff is considered income.

The payment will be subject to the tax and NI rates appropriate to the individual.

As this is classed as income derived from employment, those in receipt of certain income assessed benefits may see their benefits reduced or paused, but will be better off overall. To mitigate the impact on benefits, HSC Trusts will be offering any individual concerned with the option of receiving their award in instalments.

The NHS in England has not implemented a Recognition award, NHS Wales has adopted the same principles as here, with staff being afforded an option to receive payment by instalments. Subject to formal approval from the Department of Finance, the payment to be made will be up to £735 per individual, meaning that those who pay tax at 20%, and National Insurance at 12%, will receive up to £500 after tax and National Insurance deductions