Impact assessment

Test and Trace support payment scheme

Published 13 October 2022

Applies to England

Project objectives

Alongside the legal duty to self-isolate, support measures (the Test and Trace Support Payment scheme (TTSP), practical support and the medicines delivery service) were introduced to help people who were required to stay at home because of COVID-19. These policies were shown to increase compliance with the requirement to self-isolate, reduce community COVID-19 transmission and support groups that were disproportionately impacted by the virus (e.g., low-income workers and ethnic minority groups).

HMRC worked with the Department of Health and Social Care (DHSC) on the Test and Trace Support Payment Scheme, which was launched in England on 28 September 2020.

The measure supported low-income workers on benefits who had been contacted by NHS Test and Trace and told to self-isolate for periods between 28 September 2020 and 24 February 2022. Eligible customers received a £500 support payment from their local authority, who used some HMRC data to check eligibility.

A parallel scheme of discretionary payments was set up by local authorities to help those outside the welfare system to self-isolate.

HMRC’s approach was that these payments should remain taxable but not be subject to National Insurance contributions and should be disregarded for benefits, including tax credits.

HMRC used existing data gathering powers to require local authorities to provide the information needed to bring the payments into its tax systems, avoiding the need for local authorities to set up PAYE schemes for employed claimants. Claimants’ tax codes were adjusted to collect any income tax due through the PAYE scheme of their employer, either through regular payroll or after the end of the tax year. Self-employed claimants reported the income through the Self Assessment process. Many claimants would have no income tax to pay. Following the successful rollout of the vaccine programme, and wider availability of antiviral treatments, the scheme was closed on 24 February 2022 as we shifted to a different way of managing the pandemic. In addition, given the significant mental, social, educational and economic impacts of self-isolation, it was proportionate to move to an approach that managed COVID-19 by providing public health advice to positive cases and contacts in guidance, rather than relying on a legal duty.

Similarly, as we treat COVID-19 like other infectious diseases, where there is not a legal duty to self-isolate and a bespoke support system does not exist, the removal of TTSP, practical support and MDS were considered to align to existing health and welfare policies.

This screening equality impact assessment relates to the operational delivery of the above noted policy.

Customer groups affected

Individuals and employers.

What customers needed to do

What customers needed to do as a result of the change

Customers did not have any direct interaction with HMRC. Instead they engaged in the scheme through local authorities who provided HMRC with the data needed to allow the administration of tax collection.

How customers accessed this service

The Test and Trace Support Payment scheme was run by local councils in England.

Customers who thought they met the eligibility criteria for either the Test and Trace Support Payment or a discretionary payment could apply through their local council. If they were unsure of their local council, they could enter their postcode on GOV.UK, and get a link to their council’s website, where more information was available.

Parents or guardians could apply if they needed to take time off work to look after a child who has tested positive.

When customers needed to do this

Customers could claim up to 42 days after the first day of their self-isolation period.

The Test and Trace Support Payment scheme ended on 24 February 2022. People who tested positive after 23 February were no longer able to make a claim for this payment; however those contacted before 23 February could still claim within 42 days of receiving their notification,

The last day to make a new claim was 6 April 2022.

Assessing the impact

Before the scheme started, we assessed the equality impacts on all the protected characteristic groups in line with the Equality Act and Public Sector Equality Duty and section 75 of the Northern Ireland Act:

• racial groups
• disabled and not disabled
• sex
• gender reassignment
• sexual orientation
• age
• religion or belief
• pregnancy and maternity
• marriage and civil partnership
• people with dependents and those without
• political opinion (for Northern Ireland only)
• people who use different languages (Including Welsh Language and British Sign Language)

There is no evidence to suggest any specific impacts on those customers within any of the protected characteristic groups (listed above).

Opportunities to promote equalities

We have considered opportunities to promote equalities and good relations between people in each of the protected characteristic groups and those outside of that group.

We have not identified any opportunities.

A full equality impact assessment is not recommended.