How much will you be losing this month?
We recommend that you keep hold of your March payslip, stick it on your fridge and keep it to hand, to compare with the one you’ll get in April and after. You will then clearly see the effect of the increases in National Insurance and of USS Pensions contributions, and what these will do to that 1% pay rise the employers imposed last year (if it hasn’t already been eroded by your increased car-parking, commuting and/or childcare costs). You might have seen the THES article on this matter.
This further erosion of your pay is on top of the real-terms erosion of the value of your pay by around 15% since 2009. And, if you happen to be a women, then statistically it is proven you are likely to be paid up to 12% less in academia than the men doing the same job. You can check the difference for you specific to Leeds against your male counterparts here:
We’d like to do something about all this, if you’re prepared to join in.
Do follow details of our national pay campaign here: https://www.ucu.org.uk/he2016
Details of the forthcoming deductions from your pay
Firstly, members of USS pension scheme will see their contributions to that scheme increase next month to 8% of your salary, up from 6.5% for CRB members (those who joined after April 2011) and from 7.5% for Final Salary members.
The government has announced changes to National Insurance contributions from April 2016. From 6 April 2016, USS pension members will no longer receive the 1.4% National Insurance rebate and will pay a higher rate of National Insurance, with contributions increasing from 10.6% to 12% on middle band earnings (ie. earnings between approximately £8,064 and £43,000 per annum in the 2016/17 tax year).
The change in National Insurance contributions is happening as a direct consequence of a change in the State Pension which will also take effect at the same time Currently, the State Pension is made up of two parts: the basic State Pension and the additional State Pension (often referred to as the State Second Pension (S2P) or previously SERPS). Members of USS are currently ‘contracted-out’ of the additional State Pension and consequently pay National Insurance at a lower rate. For people who reach State Pension Age on or after 6 April 2016, a new State Pension will replace the existing basic and additional State Pension, which will end the practice of contracting-out. As a consequence, all staff will pay the same ‘contracted-in’ rate as they build up the new State Pension in addition to their workplace pension.