Salaried v Non-Salaried:- The real finance story
A Salaried trainee can expect to be paid the unqualified teacher salary of £19,340*
From this, expect to be deducted £1,068 in tax, £931 in National Insurance, £1,431 teacher’s pension at 7.4% and HMRC Pension £286 = £3,716.
So, for the 12 month Salaried contract you will be paid £19,340 – £3,716 = £15,624.
*September 2022 figures.
A Non-salaried trainee can expect a maintenance student loan of up to £12,383**.
For most non-salaried trainees, school are employing them from 1st July in the year that they qualify. (please check with your employing school) So,
Added to this is 2 months X £1,722 (after deductions) full teachers pay = £3,444 plus an extra £1,400 tax rebate for not working between April 1st and June 30th = £4,844
So, for the 12 month academic year you will be paid £12,383 + £4,844 = £17,227.
So, for those who commence full time employment as an ECT from 1st July 2023 and are willing to take the student loan you will be £30.82 per week financially better off than someone following the salaried route.
A Salaried trainee with bursary needs to demand a wage equivalent to or more than the tax-free bursary. Even with that, a trainee paid a salary of £27,000 minus deductions of £6,366 leaves £20,634 or you can follow a non-salaried route and have a TAX FREE BURSARY OF £27,000 + Student Maintenance loan of £12383** leaving you a total of £39,383
MVTP STRONG ADVICE
The Salaried course is a challenging route into teaching. Think VERY carefully about taking a salaried position over a non-salaried with any provider. MAKE SURE that you are clear on the full financial package on offer. With the student loan, it is likely that you will be financially better off following the far gentler non-salaried route into teaching with significantly more immediate in-school support during your training year.
In addition, those applicants whose subject attracts tax free bursary would need the employing school to pay nearly double the unqualified salary to match their potential earnings through the non-salaried route
PLEASE NOTE THAT IT IS THE APPLICANT’S RESPONSIBITY TO CHECK THESE FINANCIAL FIGURES WITH AN INDEPENDENT FINANCIAL ADVISOR OR LOCAL TAX OFFICE. MVTP DOES NOT ACCEPT ANY RESPONSIBILITY FOR ANY INACCURACIES.