Will Tupe law leave us worse off?

polkadot

My husband has just changed employers based on Tupe law. He brought the contract home today and Ive just been playing with our SOA.

He has had a salary increase of a whopping £7000 a year!

So here is my problem (if it even is a problem). His income was 26500 annual, he was bringing home £1670. We are trying to work out what he will bring home from now, being on £33500-part of his contract is he has a medical aid with pru health-the company will pay the premium and he the tax.

I am currently in receipt of LHA DLA and CTC (well thats his but it goes into my account) which total £690.

Our SOA has our expenses at £2008.42 and our total required to pay minimum payments on unsecured debt is £403.40, leaving us with £71 left for debt repayments.

As I see it, his new salary will cause us to lose the LHA I think.
Can someone help me work out if we will please? I currently get £150 a fortnight and the allowance for our area is £184 (and some change).

Hubby wanted me to wait until the end of the month to inform the council so that he has payslips from both employers, but then if he signs and we end up worse off we aren't in any way prepared for it.

Can someone help us establish what his take home will be and if we will lose LHA please?

jessicamb

polkadot wrote: »

My husband has just changed employers based on Tupe law. He brought the contract home today and Ive just been playing with our SOA.

He has had a salary increase of a whopping £7000 a year!

So here is my problem (if it even is a problem). His income was 26500 annual, he was bringing home £1670. We are trying to work out what he will bring home from now, being on £33500-part of his contract is he has a medical aid with pru health-the company will pay the premium and he the tax.

I am currently in receipt of LHA DLA and CTC (well thats his but it goes into my account) which total £690.

Our SOA has our expenses at £2008.42 and our total required to pay minimum payments on unsecured debt is £403.40, leaving us with £71 left for debt repayments.

As I see it, his new salary will cause us to lose the LHA I think.
Can someone help me work out if we will please? I currently get £150 a fortnight and the allowance for our area is £184 (and some change).

Hubby wanted me to wait until the end of the month to inform the council so that he has payslips from both employers, but then if he signs and we end up worse off we aren't in any way prepared for it.

Can someone help us establish what his take home will be and if we will lose LHA please?

The new take home pay on the new salary will be about £2080 I think, give or take a few pounds. Sorry I dont know how that affects benefits. Congratulations on the increase, I hope it works out well for you.

polkadot

Thanks Jessica

I know its a good thing, but I made the mistake of telling him immediately-rather than letting him enjoy it for a bit:(

getmore4less

Check the new contract carefully for all changes.
What if anything are they giving up for the £7k rise?

TUPE protect the employees existing terms but if they sign a new contracts that protection is gone.


If the numbers don't add up then he does not have to take the rise so check carefully.

polkadot

So far as I can see, he's giving up his travel expenses (although they do interest free loans for travel cards so Im looking into the annual card), and he will no longer be paid for overtime-but will work for TOIL instead.They are still paying our broadband.

From my calculations Jessica is right about £2080. But he also has to take pru health, which is a taxable benefit, so from what I can understand he will only pay tax on the premium. It is compulsory for him because of the vitality element-and he wants me on it because I have cerebral palsy-and by the end of august we will have two sons.

I cant find any information that sheds light on what that will cost us.

In addition to this, they will make the total 5% pension contribution-where currently he pays 2.5% which affects his tax payment and the calculation for LHA.

I found the documents I got from council when we were first awarded LHA and there are details of how they make the calculation. If my figures are correct we are still able to claim £123.00 a month, instead of the £300.00 Im currently awarded.

So provided the pru health deduction isn't too huge, and my calculations are right on the LHA...I think we will be better off after all.

Getmore4less, does that sound about right? I have my SOA in an excel spreadsheet so that I can play with the numbers as they change. Would it help to post what I think the new one will look like, and a link to my DF diary to compare to the old? I have probably over estimated our expenses (for example groceries are £300 where currently a more accurate figure is £180-£200), as Id rather have money left over at the end of the month to slowly decrease the overdraft than find we fall short because my expectations were too high.

getmore4less

I don't have much of a clue about benifits

The changes sound OK and TOIL for overtime might be better anyway if it would effect benifits if paid.
What travel was getting paid if to/from work then that probably should have been taxed.

polkadot

His travel was to/from work. A monthly travel card cost us £144 a month and he was reimbursed £99. I really dont understand how the tax codes etc work so this is where Im falling short in the planning department.

We are quite happy with the Toil arrangement, before he was working so hard and like you say-it often left us worse off given the tax he was paying on the overtime, not to mention his state of mind.
Im 30 weeks pregnant so the TOIL will suit us well in terms of giving him long weekends and breaks when he needs them when new baby arrives.

So thank you, now that I've had the light of day to look at it, I am feeling very positive about it...it doesnt drop a miracle in our lap-but it does make work lighter after all. And puts us one step closer to not relying on social at all. I do get DLA and Child benefit, but I cant see that being touched by the guv as quickly as the LHA might.