Hidden cost of home loans

31st August 2001 at 01:00
TEACHERS who qualify for the Government's new interest-free loans towards the cost of buying a home could find themselves hit by tax bills of more than pound;300.

Around 2,000 cash-strapped teachers in south-east England are set to benefit from means-tested loans of up to pound;25,000. But union leaders say that unless the Treasury grants an exemption on the benefit, ministers will be guilty of "giving with one hand and taking away with the other".

Without tax exemption, teachers will have to pay pound;330 in extra tax each year. Education authorities will also have to pay out an extra pound;180 annually in National Insurance contributions.

Doug McAvoy, general secretary of the National Union of Teachers, said:

"Extraordinary cynicism would greet a Government announcement that so blatantly gives with one hand and takes away with the other."

Subscribe to get access to the content on this page.

If you are already a Tes/ Tes Scotland subscriber please log in with your username or email address to get full access to our back issues, CPD library and membership plus page.

Not a subscriber? Find out more about our subscription offers.
Subscribe now
Existing subscriber?
Enter subscription number


The guide by your side – ensuring you are always up to date with the latest in education.

Get Tes magazine online and delivered to your door. Stay up to date with the latest research, teacher innovation and insight, plus classroom tips and techniques with a Tes magazine subscription.
With a Tes magazine subscription you get exclusive access to our CPD library. Including our New Teachers’ special for NQTS, Ed Tech, How to Get a Job, Trip Planner, Ed Biz Special and all Tes back issues.

Subscribe now