CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

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Miss L Musguin was refused a pay rise by her employer on the basis that she would only be working for a few months before her maternity leave started. The tribunal held at The East London Hearing Centre ruled that this was unfair.

The main evidence used in the case was a series of WhatsApp messages between Musguin and other members of staff who were present at a meeting where her pay rise was discussed. As the only reason given was her upcoming maternity leave, the judge ruled that the decision made by the director of finance was an example of overt discrimination.

Musguin was awarded £9,000 by the tribunal for injury to her feelings, with interest calculated from August 2020. This case serves as a reminder to employers to ensure staff are not treated differently because of their maternity.

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Student Loans

Paula Sussex, CEO of Student Loans Company to leave at the end of this year

Published: 23 June 2022 Emailed: 29 June 2022

Paula Sussex, the Chief Executive Officer (CEO) of the Student Loans Company (SLC) has announced that she will be leaving her role at the end of this year.

Paula joined the SLC in 2018. She has played an important role in the company by implementing a significant transformation to processes and systems. She also led the organisation through the pandemic. Paula said: "I am immensely proud of what we as a team have achieved during my time at the Student Loans Company. We have not only made significant improvements that are benefitting our customers, but we have also laid strong foundations that will enable that transformation to continue and for the organisation to play its critical role in the delivery of the UK Government’s education reforms, including the new Li felong Loan Entitlement. None of this could have been done without the commitment and strength of all at SLC. Now, with a brilliant team in place, is an appropriate time to begin the succession to a new CEO.”

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Student loan interest rates and repayment threshold changes Published: 11 August 2022 Emailed: 17 August 2022

The Department for Education (DfE) and the Student Loan Company have confirmed the interest rates and repayment thresholds for income contingent student loans. Also confirmed are the interest rates and deferment threshold for mortgage style student loans. Plan 1 From 1 September 2022 the interest rate will be 2.75%. This is the bank rate plus 1% and may be adjusted during the year, if the bank rate is to change. The low interest rate cap is in effect, should this no longer apply the rate will become 9%, the applicable rate of Retail Price Index (RPI).

From 6 April 2023 the repayment threshold will rise to £22,015.

Plan 2 and postgraduate Interest rates for plan 2 are usually between RPI and RPI plus 3%. However on June 11 2022, DfE ministers announced that this would be capped at 7.3% for those on plan 2 and postgraduate loans.

From 1 September 2022 to 30 November 2022 the maximum interest rate will be 6.3%. From 1 December 2022 to 31 August 2023 the maximum interest rate will be 7.3%.

From April 2023 the repayment thresholds will be:

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