2. Statement by the First Minister: Coronavirus (COVID-19)

Part of the debate – in the Senedd at 11:47 am on 3 June 2020.

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Photo of Mark Drakeford Mark Drakeford Labour 11:47, 3 June 2020

Well, Llywydd, there will be answers to all of those questions, but those answers were contingent upon a reply from the UK Government to our plea to them to make this payment free of tax and free of national insurance contributions. It was deeply disappointing to receive a response from the Financial Secretary to the Treasury on Monday declining to do that. That, of course, now means we will have to think through a whole series of issues to try to minimise the impact of that Treasury decision. It's not possible to answer all of Mike Hedges's questions this morning, because we had hoped that there was a different and far better solution.

We wanted our £500 to go directly to the people who we have identified for the contribution they have made, because they are amongst the least well-paid people in our workforce. We weren't asking the Treasury for money, we were simply asking them not to rob those people of the money that the Welsh Government was providing to them. Now, a significant amount of the money that the Welsh Government is still going to provide to those social care workers will end up not in their pockets but in the pockets of the Treasury.

We will have to reconsider a whole number of the questions that Mike Hedges has quite properly raised to try and find ways of mitigating that decision, but the real answer is that this shouldn't be subject to tax and it shouldn't be subject to national insurance, and then we wouldn't have to worry about finding ways of trying to make that impact less significant.