The Department for Work and Pensions has confirmed that one-off bonus payments for Personal Independence Payment claimants taking part in the Timms Review workshops will be subject to tax and National Insurance contributions. The deadline to sign up for the workshops is Friday, August 21.
Workshop details and sign-up deadline
The Timms Review workshops are scheduled to take place across September and October. PIP claimants are invited to sign up and help shape DWP reforms. The sign-up deadline is tomorrow, Friday, August 21.
Participants who attend the full workshop will be offered a one-off payment. The DWP confirmed that it will also reimburse reasonable travel costs and other necessary expenses, such as costs of a personal assistant, for those attending a workshop in a personal capacity. Further information will be provided to those invited to a workshop.
Tax and benefit implications
The DWP stated: "Any payments you receive from this are subject to tax and National Insurance contributions. You are responsible for disclosing payments to HM Revenue and Customs (HMRC) and any queries on these arrangements should be taken up with HMRC. These payments will not be pensionable."
The Labour Party government websites added: "Voluntary participation in this workshop is not considered to be ‘work’ for the purpose of means-tested benefits. However, if you receive benefits, you should inform your work coach or local Jobcentre before taking part."
Universal Credit claimants can check their benefits through their online journal. The DWP can provide a letter detailing participation in the workshop to support conversations with work coaches or Jobcentres.
Impact on benefits and optional adjustments
Due to the value and nature of these payments, they will be treated as earnings and could affect benefit entitlement, depending on individual circumstances. The DWP advised: "You should consider the impact on your earnings or benefits by speaking to your work coach or local Jobcentre before you sign up."
Participants can also choose to attend the workshop without the payment or request a lower amount, once the payment and expense guidance for this activity has been shared with them.
