Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has had discussions with the Welsh Government on its policy of offering one-off payments to health service workers; and if he will make an assessment of the potential merits of such payments being classed as cost-of-living payments rather than income for tax and benefit purposes.

The Government recognises that public sector workers play a vital role in delivering our world class public services.

It is for the Welsh Government to allocate their funding in devolved areas, including for public sector pay, as they see fit and they are accountable to the Senedd for these decisions.

In England, the Government accepted the pay recommendations of the independent Pay Review Bodies for the NHS for 2022/23. These gave the highest uplifts in nearly twenty years, reflecting the vital contributions public sector workers make to our country and the cost of living pressures facing households. All NHS pay bands have received a £1,400 increase with those at the lowest end seeing a pay rise of 9.3%. We invited the unions to sit down with us and we have started discussions on the evidence we will be submitting to the independent pay review bodies for 2023/24, and to put forward their own evidence for discussion.