Up unitl 24 February 2022 grant funding was available to employed or self-employed people on low incomes who were been asked to self-isolate due to COVID-19 by the relevant authority, could not work from home and would suffer financial consequences as a result. Individuals who qualified for assistance received a lump sum payment of £500 for the duration of their self-isolation.
The payments were administered across the UK as follows:
- Test and Trace Support Payment in England.
- Self-isolation Support Grant in Scotland.
- Self-isolation Support Payment in Wales.
Employee grants
- Grants paid to employees are taxable as earnings.
- In October 2020, the government introduced secondary legislation to make sure that payments under the English scheme are not subject to Class 1 (employee and employer) and Class 1A (employer) National Insurance Contributions to prevent these administrative costs arising.
- Further regulations came into force in January 2021 to exempt payments under the Scottish and Welsh schemes.
Self-employed grants
- Grants paid under the schemes are also classed as trading income in respect of the self-employed and liable to Class 4 and 2 National Insurance Contributions.
- The measure is formally retrospective for the tax year 2020 to 2021. This is when the English, Welsh and Scottish schemes were implemented.
Overview
The payment scheme opened on 1 September 2020 in England and initially only applied in specific areas subject to local lockdown starting, on a trial basis, with Blackburn with Darwen, Pendle and Oldham. It closed on 24 February 2022.
It applied to people who:
- Are employed or self-employed and receiving either universal credit or working tax credit.
- Have tested positive for COVID-19, as well as their contacts.
Eligible individuals received £130 for their 10-day period of self-isolation.
- Other members of their household, who had to self-isolate for 14 days received £182.
- Non-household contacts advised to self-isolate through NHS Test and Trace received £14 per day, up to £182, with the actual amount being dependent on the length of their isolation period.
Those eligible to receive a payment will need to provide:
- Notification from NHS Test and Trace.
- A bank statement.
- Proof of employment/self-employment.
From 28 September 2020, a test and trace support payment was extended to all regions in England with payments of £500 being available to those who qualified.
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A payment of £500 is available if either:
- You have been told to self-isolate because of Coronavirus (COVID-19) and you cannot work from home.
- You’re the parent or guardian of a child who has been told to self-isolate and you need to take time off to look after them.
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You must be employed or self-employed to get the payment.
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You need to claim within 42 days of you or your child’s first day of self-isolation.
You or the partner you live with must get one of the following benefits:
- Universal Credit.
- Working Tax Credit.
- Income-based Employment and Support Allowance.
- Income-based Jobseeker’s Allowance.
- Income Support.
- Housing Benefit.
- Pension Credit.
You must have given NHS Test and Trace the information they’ve asked for, and have a Test and Trace account ID.
How to apply
See Apply for a Test and Trace payment
Small print
Policy paper: Exemption from Class 2 and 4 NICs exemptions for Track and Trace payments
Useful guides on this topic
COVID-19 Grant Funding summary
What cash grants are available to support businesses during the Cornonavirus crisis? An index with links and summaries.
COVID-19: Government Support tracker
This tracker covers measures announced by the government to support individuals and businesses, as we get through COVID-19.
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