I would like to draw your attention to the following website which shows the effect on an officer’s income of the Winsor recommendations:
After inputting the required information, many members will find that their pay falls as a result of these changes.
Even for those whose pay appears to rise, it is important to remember that these calculations only show changes to income in cash terms.
Inflation is currently running at 5% and is forecast to be close to this level for at least the next 12 months, so the value of basic pay will fall as a result of the two-year pay freeze which the Government wishes to impose upon us.
These calculations also take no account of the fact that under the Winsor recommendations officers will not move up their pay increments. This means that if an officer is not at the top of his or her pay scale, their pay will actually be lower than it would otherwise have been, despite any increases that result from Mr Winsor’s recommendations.
I should also point out, for your information, that while Mr Winsor factors in pension contribution increases, these have yet to be discussed by the Police Negotiating Board, and we have been assured that discussions will take place there before any increases are implemented.
In common with all other employees, though, from April 2011 there will be several changes to the income tax and national insurance regimes. In particular:
- The income tax personal allowance will rise to £7,475, but the salary level at which employees begin to pay the higher rate of income tax (40%) will fall from £37,400 per annum to £35,000 per annum.
- Employee national insurance contribution (NIC) rates will rise from 11% to 12% for those who earn between £139 a week and up to £817 a week and from 1% to 2% for those who earn anything over £817 per week.
The effect of this is that employees with total earnings of more than £35,000 a year will find themselves paying more in income tax and national insurance contributions.
I hope that you find this information helpful to understand the true impact of the Winsor recommendations on you take home pay. The PFEW will engage fully on negotiations over these recommendations, but we have no intention of agreeing to any changes which would see a fall in our members’ pay and conditions of service. As I have tried to do throughout this process, I will continue to keep you updated on developments.
Police Federation of England and Wales