As much as I like to think of myself as a live-in-the-moment, fly-by-the-seat-of-your-pants, Bob-Marley-Be-Happy kinda person, some situations call for some serious forward planning.
And education this year is looking at some major hits.
In order to not get caught out, you’re going to need to take some serious time – and invest in some serious comfort food – and plan for the following. Deep breath, now:
As much as I like to think of myself as a live-in-the-moment, fly-by-the-seat-of-your-pants, Bob-Marley-Be-Happy kinda person, some situations call for some serious forward planning.
And education this year is looking at some major hits.
In order to not get caught out, you’re going to need to take some serious time – and invest in some serious comfort food – and plan for the following. Deep breath, now:
Pensions
You’re getting hit from all corners here. LGPS employee contributions have risen as of the new tax year, and a lot of employers are calling the bet and putting theirs up too. On top of that, Teachers Pensions Employer contributions rise to 16.48% in September 2015 from 14.10%. Because pensions weren’t frustrating enough.
National Insurance
Technically a 2016 issue, but worth preparing ahead for, NI rebates above the secondary threshold are a thing of the past. At the moment, the standard rate of NI is calculated at 13.8% of earnings above the £153 weekly threshold for all employees with a rebate of 3.4%. This rebate, along with the 1.4% employee rebate, will cease to be (and the new secondary threshold will be above £156, just for references sake!)
Maternity/Paternity/Adoption Pay
SMP/SPP/SAP has increased this tax year to £139.58 weekly.
It might not seem like a lot, but with 39 weeks to pay for and who knows how many future parents waiting in the wings, it’s an extra cost a school should really be aware of. Along with some fiddly shared parental leave heading our way too. It’s going to be a party.
Increments
Always the time of year I wish I was a teacher. April brought with it an onslaught of LGPS pay increments, and September is looking bright for educators across the nation. Not so much for the school. Often, September increments can hit an employer pretty hard and where it hurts, so keep it in mind when the percentage increase is decided upon. And link it to the pension contribution increase. This one’s going to be tough.
London Living Wage
Obviously only applicable to schools in the London area, the hourly rate is increasing to £9.15 for contracted staff, and £10.13 for casual employees. An extra allowance is implemented monthly to subsidise city living too! Anyone under an NJC11 grade qualifies for the Living Wage, though it is down to academies whether they choose to implement the change.
And now you’ve been thoroughly terrified, remember that we’re here to help out with questions where we can, and even though the numbers seem daunting, it’s nothing chocolate can’t fix. Well, sort of. Throw some cocktails in there too, just in case. Better to be over prepared, after all!