The Chartered Institute of Taxation’s Low Incomes Tax Reform Group (LITRG) has welcomed the Scottish Government’s £230 bonus payment to carers and stressed that it is important to make sure that carers know this extra money is coming.
A one-off payment of £230.10 – called the Coronavirus Carer’s Allowance Supplement – will be made to carers who receive Carer’s Allowance Supplement1. It is intended to help offset the increased costs and loss of income incurred because of caring responsibilities during the Coronavirus pandemic.
LITRG wants the Scottish Government to use the time between now and the payments being made to communicate with carers to make sure they are aware of the extra money they are about to receive, to inform them that it is taxable and also to let them know that it will not affect their entitlement to any other benefits that they get.
Moira Kelly, the chair of the Low Incomes Tax Reform Group, said:
“Both the UK and Scottish governments have taken unprecedented steps in recent months to protect people from the impact of Coronavirus. This extra money will be a welcome boost to carers and recognises the important role they are playing in supporting some of the most vulnerable people in the country during this pandemic.
“With the payments due next month, the Scottish Government needs to use this time to communicate with carers so they know that this extra money is coming and reduce any unnecessary worries that they might have received it in error.
“We also think that they should stress to those who receive it that it will be taxable, but that it will not affect their entitlement to any other benefits they currently receive”.
1. Carer’s Allowance Supplement is an extra payment made by the Scottish Government to people in receipt of UK Carer’s Allowance on a specified date. It is a devolved benefit and is paid out twice a year by Social Security Scotland. The next payment is due to be made in June to those in receipt of UK Carer’s Allowance on 13 April 2020. The bonus Coronavirus payment will be paid at the same time as the expected June payment.