Government’s refusal to disregard COVID-19 compensation payments for means-tested benefit purposes is ‘lacking in reason and compassion’, says Shadow Secretary of State

Work and Pensions Secretary says that COVID-19 payments differ from Grenfell or Windrush compensation payments because there has been no failure within government

The government's refusal to disregard coronavirus (COVID-19) compensation payments for the purposes of means-tested benefits is 'lacking in reason and lacking in compassion', the Shadow Secretary of State for Work and Pensions Jonathan Reynolds has said.

During oral questions in the House of Commons today, Mr Reynolds queried why compensation payments made to families of NHS keyworkers who have died after contracting coronavirus while working on the frontline are not disregarded when assessing entitlement to means-tested benefits, when other payments - such as those made in respect of the Grenfell Tower and Windrush compensation schemes - are disregarded.

In response, the Secretary of State for Work and Pensions Dr Thérèse Coffey said that -

'... he specifically referred to some other programmes, where it is absolutely acknowledged that there has been a complete failure within Government in that regard ... this is not the case regarding the NHS but I am sure that, as the NHS is a seperate employer from the goverment, it will continue to work with its employees and the relatives of people who have sadly died.'

Replying, Mr Reynolds commented - 

'I find that answer lacking in reason and lacking in compassion.'

NB - in a written answer (also today) - addressing the decision not to disregard the compensation payments - the Minister for Welfare Delivery Will Quince advised that -

'As the NHS and Social Care Coronavirus Life Assurance scheme is non-contributory and taxpayer funded, payments are factored into means-testing to ensure fairness and affordability for the public purse.'

Mr Reynold's question and the Secretary of State's answer are available from Hansard