Reeves NI change:
NMW for adults over 21 went up: from £11.44 to £12.21
NI Increased from: from 13.8% to 15%
NI Threshold change: from £9100 to £5000
Full time average teacher salary pre-Reeves: £40k
Employer NI: £4264
Employer total cost: £44264
Employee gets: £32320
HMRC gets: £11944
Full time NMW pre-Reeves: £21,049
Employer NI: £1649
Employer total cost: £22698
Employee gets: £18674
HMRC gets: £4024
With the NI and NMW change:
Full time average teacher salary post-Reeves: £40k
Employer NI: £5250
85% of NI change refunded: £838 refund
Employer total cost: £44425
Employee gets: £32320
HMRC gets: £12105
Full time NMW post-Reeves: £22,466
Employer NI: £2620
85% of NI change refunded: £825 refund
Employer total cost: £24261
Employee gets: £19,695
HMRC gets: £4566
Now assuming 50% of school staff are teachers (from google) and counting the rest as NMW for simplicity, that increases staffing costs for the school by 2.5%
Ie their total budget (70-80% on salaries) is cut by about 1.8%.
Doesn't sound that much?
Multiply it up by the £64 billion allocated to schools out of the education budget, and you can see that the government have clawed back £1.15 billion from the budget they give schools.
... About the same amount as the failure of the education VAT is going to cost. Coincidence?
We did say that the VAT policy would harm state kids as well as private.. Well here we go.