Outcry as NHS Highland bullying victims compensation is heavily taxed and costs some their benefits amid claims confidentiality is also being violated
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NHS Highland bullying victims have been left outraged as it emerged settlements paid by the health board are subject to tax.
It means that not only are they getting less than expected, but their identities have also been revealed to staff in payroll and caused some difficulties with benefits.
A letter from the Healing Process team – set up to offer financial restitution and psychological counselling – says handling of compensation payments was “never explicitly discussed”.
“The method and treatment of payments under the Healing Process had not received the detailed examination and discussion which could have more quickly highlighted the different perspectives on this matter,” the leaked letter stated.
“Whilst it was noted in the scheme that payments would be subject to applicable tax and national insurance, there were different assumptions made about what this meant and how the payments would be made, that were never explicitly discussed and brought to light.”
A member of the No More Victims anti-bullying group, Linda Kirkland, said the health board’s actions amounted to the snatching of a loss from the jaws of victory.
Some victims who are still unable to work have seen their benefits stopped because the way their compensation has been handled means it is classified as “income” by tax authorities.
“It is absolutely horrific for people,” Ms Kirkland said. “Those that have already received a payment minus taxation now have financial harm on top of the abuse that they have suffered at the hands of NHS Highland.”
The health board has kept the Scottish Government informed of its plans over compensation, leading Highland Conservative MSP Edward Mountain to call on both bodies to decide whether they are, in fact, able to deal sensitively with bullying victims.
“This is about pain and suffering and being forced out,” he said. “Frankly, if NHS Highland and the Scottish Government don’t understand this then they need to take a long hard look in the mirror and decide whether they are the right people to be looking after those who have given so much to the health and well being of those in the Highlands and Islands.
“The Healing Process was set up to help employees who had been bullied and suffered financial hardship as a result. It is vital that this process shows the compassion that had been lacking under the previous management of NHS Highland.”
A spokesman for the Scottish Government said: “While we are aware of the concerns about tax deductions, the suggestion that the payment is only taxable because it is being made through payroll is incorrect and misleading. NHS Highland are addressing the concerns raised by actively pursuing these directly with HMRC to reaffirm the position and to explore if there is any dispensation available in respect of the compensation payments.”
A spokeswoman for NHS Highland said: “We have written to HMRC to explain the details of the Healing Process and seek a ruling on the tax treatment, which we would expect to have at least an initial response to in the coming weeks.”
Highlands and Islands Labour MSP David Stewart said: “Having even small amounts of this money deducted and taxed has disrupted people’s benefits and brought further stress for those who have contacted me,” he said.
“What I can’t understand is why this wasn’t thought through more thoroughly in the first place.”
