New tax measures will hit officers hard and worsen the retention crisis, says South Wales Police Federation chair.
South Wales Police Federation has warned that the Government’s latest tax measures will further strain officers and exacerbate the ongoing retention crisis in policing.
The Government has opted to freeze income tax thresholds – the point at which workers start paying tax and the point at which they enter higher tax bands – until 2031. Analysis from the Police Federation of England and Wales (PFEW) shows that this will push almost the entire police workforce into the 40 per cent tax band within six years.
Responding to these figures, branch chair Phil Walker said: “The changes in income tax and national insurance announced by the Government are, in effect, another pay cut for our members.
Retention crisis
“Officers are working harder than ever, under more scrutiny and pressure than ever, yet their take-home pay continues to be eroded. It will undoubtedly hit morale and make many wonder whether the sacrifices and pressures they face are worth it.”
He added: “We already have a retention crisis in policing, and these measures will only make it worse if action isn’t taken. Officers deserve fair pay for the work they do, keeping our communities safe. It’s as simple as that.”
Decades of below-inflation pay awards mean that police pay is now worth around 20 per cent less in real terms than it was in 2010. On top of this, even officers at the lowest ranks will increasingly face higher-rate tax on their salary, reducing the impact of any pay awards.
“It’s unacceptable that many of our members are struggling to make ends meet, and some are even turning to food banks,” Phil continued.
“Police officers keep us all safe. They need a fair pay award before we see even more experienced colleagues leave the service.”
Key findings from PFEW analysis include:
- Almost all officers will be higher-rate taxpayers by 2030–31
Under current Government policy, 97.8 per cent of full-time federated officers in England and Wales will fall into the higher-rate tax band by 2031.
- Constables hardest hit
Constable will see the biggest impact, with 99.8 per cent projected to be higher-rate taxpayers by 2031.
- Pay progression no longer guarantees more take-home pay
Officers progressing normally through the pay scale will automatically enter higher-rate tax bands, meaning fiscal drag erodes any pay increases.
- Taxation undermines the value of pay awards
Because tax is applied to total pay, including overtime and allowances, freezing thresholds until 2031 means that every pay award loses value immediately, leaving officers financially worse off despite incremental increases.
The Federation’s Copped Enough campaign continues to highlight the urgent need for fair pay, proper support, and respect for policing. Phil ended: “Our members work tirelessly to protect the public. They deserve to be fairly rewarded – not penalised by a system that pushes them into higher tax brackets while their living costs continue to rise.”
Tax thresholds
Police Federation CEO Mukund Krishna said that the new analysis is ‘stark’, adding: “Freezing tax thresholds until 2031 means almost every police officer in England and Wales will be paying higher-rate tax within six years.
“Not because they’re earning more, but because the Government has designed a system that quietly drags them into higher taxation every year. It is a stealth tax in its purest form.”
Mukund said that while higher-rate tax used to apply to senior ranks, now it’s bearing down on the average constable.
He said: “Officers tell us the same thing everywhere we go: they are working harder, under more pressure, yet taking home less.
“This is a system producing an exodus of experience as officers resign in record numbers.
“The impact on community safety will be stark unless the Government acts with urgency to restore police pay and deliver a truly independent and fair mechanism with collective bargaining and binding arbitration at its heart.”
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