Criticism of the way NHS Highland is handling compensation payouts for bullying victims has been raised with the First Minister.

Nicola Sturgeon said she was “very happy to look into” making changes to the payments – but went on to suggest it would be more straightforward for the UK government to address.

It followed a question from local MSP Edward Mountain, who said the problems were compounding the pain and suffering of victims.

Speaking afterwards, the Highlands & Islands MSP described the First Minister’s response as “disgraceful” and said would be following up the issue in writing.

He said: “The First Minister and NHS Highland need to resolve this urgently. A caring employer would have made sure that this wasn’t an issue in the first place.”

Victims of workplace mistreatment at the health board have seen compensation taxed and benefits stopped because the payment was treated as wages, which a local MSP says has compounded the pain and suffering of victims.  

In one case a former employee who was driven to a suicide attempt saw their compensation nearly halved.

NHS Highland has maintained that it is legally required to tax any payments at source, and says this had been made clear throughout the healing process.

The avenue for redress was set up as part of the health board’s response to an independent report by John Sturrock QC, which found hundreds of staff could have been affected by bullying.

But some of the first people to go through the system branded it a failing after they received a “shocking” offer, healthandcare.scot reported.

They criticised the involvement of NHS Highland senior figures in the process, though healthandcare.scot understands that the Scottish government and the board have told campaigners they will not be changing the set-up.

Politicians have also been raising issues with the health board and Scottish government.

Ms Sturgeon was asked today whether she believed the payments were being made correctly by Edward Mountain MSP.

He said: “I’m sure the First Minister will welcome as I do that compensation payments funded by the Scottish government are being made to those who had suffered bullying within NHS Highland – a process I support.

“Unfortunately, these payments are being administered through payroll meaning many victims, current and past employees are being put into higher tax brackets and those who have actually lost their jobs are now losing their benefits.

“Now, the Scottish government can make compensation payments without attracting income tax and national insurance.

“Does the First Minster agree with me that unnecessarily using the payroll system compounds the pain and suffering and shows no compassion to those who have been bullied and will she resolve the issue as a matter of urgency?

Nicola Sturgeon replied saying she was “very happy to look into whether there is a way in which we could make the payments differently that would avoid tax implications”.

But she added: “There is perhaps an easier way for this to be dealt with.

“It is the UK government that is responsible for deciding what income is subject to tax and is in charge of the majority of our benefits and who is responsible for deciding to exempt payments like this from that.

“And while they are at it they could exempt the £500 bonus for NHS and social care workers as well.”

The payment for health and care staff was unveiled last week at the SNP’s annual conference as a ‘thank you’ for their efforts during the covid-19 crisis.

SNP politicians have called on the UK government to exempt it from tax.

Following First Minister’s Questions, Edward Mountain MSP commented: “The First Minister either doesn’t care or doesn’t understand. In four and a half years as an MSP I’ve never heard such a disgraceful response, when all that was needed was compassion.

“The first £30,000 of compensation can be made and should have been made as a non-taxable payment. There was no need for compensation to be paid through payroll, creating tax implications and a loss of benefits for those already bullied.”

Speaking about progress at NHS Highland since Sturrock’s bullying report, one of the original whistle-blowers told healthandcare.scot they feared the aftermath of the pandemic could lead to a rise in bullying across the health service.

Inverness GP Dr Iain Kennedy said: “When pressure is applied that there is always the risk that behaviours deteriorate.”

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