Over 1,000 South Tyneside test and trace £500 payment applications rejected – as council says it has spent more than Government has allocated

Less than a quarter of South Tyneside residents who have applied for NHS test and trace payments have been paid the £500 grant, figures have shown.

As of December 16, the council had received 1,256 applications, with 225 paid out and 1,031 rejected under the criteria.

Funding was allocated to local authorities by the Government for the scheme which has run from September 28.

With five weeks of the scheme left, South Tyneside Council have confirmed they had spent over their allotted allowance of funding from the Government.

The scheme allows those who have been told to self-isolate by NHS Test and Trace app to claim a one-off payment of £500 to cover a loss of earnings over the isolation period, providing they claim certain benefits.

For those who do not claim income support or credit, local authorities have the ability to offer discretionary payments for those who are employed or self-employed – however councils can set additional criteria.

South Tyneside Council’s criteria for the discretionary scheme is as follows:

- You are able to prove that you will face financial hardship because you are unable to work while you are self-isolating.

All of the criteria is set out on the council’s website and eligible residents are encouraged to apply by clicking here.

South Tyneside Council have acknowledged that the eligibility criteria does limit the number of people who qualify for the scheme but that all applications are considered for discretionary support.

A council spokesman said: "The level of payments made to date now exceeds the initial funding provided by Government although the Government guidance indicates the full costs will be reimbursed.

"The eligibility criteria set by Government is strict and does limit the number of people receiving help through the scheme.

“The Council seeks to apply discretion where it is able to support those that do not meet all of the qualifying criteria.”

Both Members of Parliament for South Tyneside have criticised the scheme, with Jarrow MP Kate Osborne highlighting that the scheme does not go far enough to support parents and carers.

She said: “I have serious concerns about the criteria of the Test and Trace Support system. I understand that 7-in-8 low-income workers are not eligible for the payment and will therefore still rely on Statutory Sick Pay or occupational sick pay if told to self-isolate.

“The £500 self-isolation payment is also not available to parents and carers who must take time off work due to their children being told to self-isolate.

“This is not encouraging people to do the right thing and self-isolate."

South Shields MP Emma Lewell-Buck added: “It’s just another example of the Government making a mistake over the course of the pandemic.

"There wasn’t enough money given out to local authorities and then the responsibility was devolved to councils to approve the payments, meaning they take the flack for it.

"The criteria is so tight that it is difficult for anyone to get support. It looks good as a promise of support from the Government but in reality, it doesn’t work.”

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