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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

To refuse a pay rise

48 replies

Iwanttobeadog · 20/10/2015 07:56

I work in the public sector. My pay has been stagnant for five years. I've recently gained a new qualification and taken on more responsibility and have been summoned to see my director this morning for some 'good news'

I suspect I'm going to be offered a small salary increase

However, any increase will take me over the limit where I'll need to start repaying my student loan

We currently live hand to mouth with absolutely nothing spare and indeed most months have a deficit

Unless it's a fairly substantial rise ( which given the state of our budgets I know it's not going to be) then I'm actually going to be quite a lot worse off each month as the increase will be nowhere near as much as my loan repayments

Clearly I'd be bonkers to say thanks but no thanks but I can't get my head around how to deal with this

Any advice?

OP posts:

bedraggledmumoftwo · 20/10/2015 09:36

The suggestion to ask for more leave instead sounds good in principle, but I'm not sure it would be possible in the public sector with standard hr systems etc. They might be able to give you special paid leave but it would probably be a one off as I cant see them making it a contractual benefit. On the other hand none of the public sector organisations I have worked for have been able to hand out payrises outside of the standard appraisal system, so maybe you could. There are often instant rewards available in the form of shopping vouchers, which I assume wouldn't be recorded by payroll but that would be more like a one off £50.

You.never know, it could be a big pay rise, at which point you might get in excess of the sl repayments? That would only have to be a couple of grand a year- not outside the realms of possibility if you have taken on new responsibilities, surely?

Original poster

Iwanttobeadog · 20/10/2015 09:37

Thanks all, there's some really useful suggestions here that give me something to explore should it indeed be a payrise. I'll find out just before lunch

OP posts:

Scarydinosaurs · 20/10/2015 09:40

Crap, what a shit system that old style was.

I agree- ask for more holiday!

PoundingTheStreets · 20/10/2015 09:45

This is exactly what happened to me (old-style loan) and it sucks. I was left worse off than ever at a point where I was really struggling. I somehow coped and got through it but it's rubbish. Sympathies if you find yourself in this situation.

scatterthenuns · 20/10/2015 09:48

The old loans were well and truly shite.

Whoknewitcouldbeso · 20/10/2015 09:49

I would be honest too and say that unfortunately such a small raise (assuming that is the conversation) will actually leave you worse off each month. Then ask if you could transfer it into another benefit instead.

cantucci01 · 20/10/2015 09:54

Sacrificing the increment to your pension so you don't trigger the loan repayments is a great idea. You want to have the increment if at all possible so that it's a better starting point for your next rise/negotiation.

TheUnwillingNarcheska · 20/10/2015 10:06

I agree with cant sacrifice it to your pension. That way you keep the salary increase which would help for future increases and hopefully by then they give you a big enough raise to help out with the student loans.

As student loan threshold fell by £2k a lot of people who usually deferred couldn't. There has been a thread running on this on the Money page since Eurido bought the loans.

Junosmum · 20/10/2015 10:10

Go to thesalarycalculator.co.UK and check how much you can accept without going over the limit/ how much you'd have to repay.

UterusUterusGhali · 20/10/2015 10:22

Good luck, op!

My ex once took a raise without discussing it that actually left us £2k worse off.
:(

MsRinky · 20/10/2015 11:22

The threshold did fall last year, but the repayment threshold has gone back up by over £2k this year - £28,828 from £26,727, have you calculated it on this basis?

The old loan system was clearly problematic, and does lead to cliff-edge cut-offs. However, you must appreciate that it's pretty galling for students with new loans for many thousands of pounds, repayable at very low salary levels to be reading about people who haven't yet paid a penny back for what must be at least 17 years already trying to artificially keep their salaries low enough to avoid paying.

NameChange30 · 20/10/2015 11:32

Ask for a bigger pay rise! (Can't believe no one has suggested it yet!) Work out the minimum pay rise you would need to cover the loan repayments without actually losing out, and ask for that - or more.
You need to be confident in making your case, focus on your achievements and your contribution to the organisation, as well as the fact that you haven't had a pay rise in x years (I think you said 5?!!)

NameChange30 · 20/10/2015 11:36

Apologies, I've realised that tethersend did suggest asking for more!

With a new qualification and more responsibility you really deserve a decent payrise.

MadAboutMathsMum · 20/10/2015 11:51

Don't worry MsRinky I have actually paid back thousands of pounds on my student loan, way more than Erudio paid for it, but now in a different job with less pay so don't feel the need to pay money back to a debt collection company rather than the government.

ClaraBlara · 20/10/2015 12:10

From experience, they use the gross figure pre salary sacrifice. However, with the newer loans salary sacrifice does reduce the payment.

WhoTheFuckIsSimon · 20/10/2015 12:16

I'm in this situation with an old style loan. It's a huge difference if you have to start paying it back.

I didn't claim for my on call for the last half of last year (only £30 a month) as I didn't want to go over the threshold. I was 75p a month under the threshold!

Ive now dropped a day a week (not for this reason) so I know I'll be ok this year. I'm 40yo and think I only have another five years to go before it's written off.

scatterthenuns · 20/10/2015 17:10

How did it go OP?

GhoulWithADragonTattoo · 20/10/2015 17:24

Exactly this happened to me with my first job. The repayment level was something like £19,500 and I was offered a (public sector) salary of £19k. I thought 'Phew! At least I won't need to repay my loan." My employer then sent me a letter saying the bottom of my payband had been increased to £19,600 and I had to start repaying loan straightaway. So I ended up worse off because of my "pay rise". And it was the old style cliff edge too.

How did you get on OP?

AyeAmarok · 20/10/2015 18:07

I didn't know the old style loans worked that way, I'm

AyeAmarok · 20/10/2015 18:07

I didn't know the old style loans worked that way, I'm

travailtotravel · 20/10/2015 21:49

How did you get on OP?

nameinlights · 20/10/2015 22:14

I had the old style loans and I has exactly the same problem. My small pay rise meant I was worse off after the loan repayments. I'm glad there's a graded repayment system now.

rollonthesummer · 21/10/2015 07:44

Was it a pay rise, OP?

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