Scottish teachers raise concerns over backpay ‘inequality’

Teachers fear they will lose out by hundreds of pounds, following the recently agreed pay deal in Scotland, as a result of differing payroll arrangements in applying tax
17th March 2023, 7:00pm

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Scottish teachers raise concerns over backpay ‘inequality’

https://www.tes.com/magazine/news/general/scottish-teacher-pay-concern-backpay-inequality
Scottish teachers raise concerns over backpay ‘inequality’

Scotland’s biggest teaching union has today written to all 32 of the country’s local authorities over concerns that not all teachers will receive the same backpay resulting from the recently agreed teacher pay deal.

Teachers have contacted Tes Scotland with concerns that they are to be taxed more than others at the same point on the pay scale, because of different payroll approaches across Scotland.

Some have said they will lose out by hundreds of pounds because they will be subject to 2023-24 tax arrangements, rather than those for 2022-23.

An EIS teaching union spokesperson responded to the concerns this afternoon, saying that “A further potential negative implication of the failure of the Scottish government and [local authorities’ body] Cosla to settle the teachers’ pay dispute timeously, in spite of having received the claim more than a year ago, is that local authorities are under pressure now to pay backpay ahead of the end of this financial year.

“The risk of delay by individual local authorities is that new tax arrangements for 2023-24 could mean that teachers at the same point on the pay scale may have more tax deducted from their backpay than others, simply because of the payroll arrangements operated by the local authority they are employed by.”

The spokesperson added: “The EIS is writing today to all local authorities in Scotland urging that they do all within their power to prevent any such inequality in the payment of backpay that teachers in Scotland should never have been put in the position of having to wait for in the first place.

“In all circumstances, any employee who believes that they have overpaid tax can contact HMRC directly.”

Tes Scotland was contacted this week by teachers at the top of the main grade scale, who said that some councils were taxing their 2022-23 backpay at 2023-24 rates, losing them hundreds of pounds. Some were critical of their union representation, saying this should have been factored into pay negotiations.

Some of the concerns raised with Tes Scotland related to teachers employed in East Lothian.

An East Lothian Council spokesperson said: “There are HMRC rules that specify that pay is taxed at the rates applicable when it is paid. As negotiations on the teachers’ pay deal have only just concluded, it is not possible to process backpay until April’s salary. Therefore, the tax rates for 2023-24 will be in operation.

“There may be authority areas that, due to the timing and frequency of their pay dates, are able to process payments for March, where the 2022-23 rate will apply.

“Guidance on this was included in EIS advice to their members.”

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