Officers face 1.4% rise to National Insurance contributions
POLICE officers are facing yet another hit in the relentless attack on their take home pay this April with a 1.4% rise in their National Insurance contributions.
Following little or no pay rises since 2011 and regular increases to pension contributions, members of all the police pensions schemes will be paying National Insurance Contributions at a rate which is 1.4% higher than they currently are from 6 April 2016.
A statement from the Police Federation of England and Wales said: “Until April 2016, those officers who are members of the police [pension] schemes will have been contracted-out from the payment of National Insurance contributions at the full rate.
“The abolition of contracting-out [by the Government] means that on and from 6th April 2016 no scheme member will be able to pay National Insurance contributions at the lower rate, but will instead pay at the same higher rate as everyone else in the UK.
“This means members of all the police schemes will be paying National Insurance Contributions at a rate which is 1.4% higher than they currently are, on earnings between the Lower Earnings Limit and the Upper Accrual Point (these are £155 and £770 per week for 2015/16).
“This will affect the amount of take-home pay. We expect more information to be released by the Home Office in the lead up to the changes.”
A statement added: “PFEW has been asking for more information to be released for many months and we have written to the Home Office and copied Elizabeth France, Independent Chair of the Pension Scheme Advisory Board into the correspondence.
“PFEW has made representations on the changes but, as this is a national scheme, covering all employees (not just police) we have no powers over it and are unable to provide members with their own individual pension quotations.”