Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential merits and effect of permitting the exclusion of a one-off bonus for carers, awarded after the covid-19 pandemic by the Welsh Government, when calculating universal credit entitlement.

No such assessment has been made.

A Universal Credit award is calculated on the basis of the set benefit rate against money coming in to ensure fairness of treatment for all claimants against the money that they have earned. This means as earnings increase Universal Credit is gradually reduced. This is a long-standing principle of means-tested benefits.

Bonuses are earnings and are treated in the same way as any other earnings. This is already true for tax and other purposes, regardless of whether or not an individual is claiming a benefit. All earnings, above any applicable work allowance, are subject to the 55% taper and the Universal Credit award is calculated on that basis.