0191 437 3000

info.npf@polfed.org

a

Higher-rate tax freeze will ‘punish’ officers by 2031, warns Northumbria Police Federation

December 12, 2025

Northumbria Police Federation has cautioned that the Government’s decision to freeze income tax thresholds until 2031 will leave officers worse off and deepen policing’s retention problems.

The Police Federation of England and Wales (PFEW) has calculated that the vast majority of officers will be pushed into the 40 per cent tax bracket within the next six years due to fiscal drag. This includes many constables who have never previously come close to higher-rate taxation.

Branch chair Nick Munnelly said the measures are effectively another hit to officers’ pay packets.

A person wearing a shirt types into onto a calculator

“This isn’t a tax freeze – it’s a pay cut by stealth,” he warned. 

“Officers across Northumbria are facing rising workloads, relentless pressure, and increasing scrutiny, yet their real-terms income keeps shrinking.”

He added: “Officers deserve wage growth that actually reaches their pockets, not measures that claw it back.”

Police pay has fallen by around 20 per cent in real terms since 2010, with frozen tax thresholds now compounding the problem by pulling even the lowest-ranking officers into higher-rate bands.

“The Government must step up and deliver fair pay before the situation becomes irreparable.”

Key findings from PFEW analysis include:


Almost all officers will be higher-rate taxpayers by 2030–31

Under current Government policy, 97.8 per cent of full-time federated officers in England and Wales will fall into the higher-rate tax band by 2031.

  • Constables hardest hit
    Constable will see the biggest impact, with 99.8 per cent projected to be higher-rate taxpayers by 2031.
  • Pay progression no longer guarantees more take-home pay
    Officers progressing normally through the pay scale will automatically enter higher-rate tax bands, meaning fiscal drag erodes any pay increases.
  • Taxation undermines the value of pay awards
    Because tax is applied to total pay, including overtime and allowances, freezing thresholds until 2031 means that every pay award loses value immediately, leaving officers financially worse off despite incremental increases.

The Federation’s Copped Enough campaign continues to push for fair pay, genuine support, and proper recognition of policing.

Police Federation CEO Mukund Krishna called the analysis ‘stark’, warning: “Officers are being dragged into higher taxation not because they’re earning more, but because the system is designed to take more from them each year. It’s a textbook stealth tax.”

He added that this squeeze is accelerating the loss of experience across the service, putting public safety at risk.

READ MORE: Shining a light on the Force’s men’s support network.

More Related Posts