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Nottinghamshire Police Federation

‘Stealth tax’ freeze will push nearly every officer into higher-rate band

17 December 2025

Nottinghamshire Police Federation has criticised the Government’s decision to freeze income tax thresholds until 2031, saying the move will cause significant financial strain for officers and intensify the current retention crisis.

Fresh figures from the Police Federation of England and Wales (PFEW) show that by 2031, almost all full-time federated officers will fall into the higher-rate tax band - including the vast majority of constables.

Branch chair Mark Lee said: “This is a stealth tax on officers, some of whom are already struggling. Our members are working tirelessly under unprecedented pressure, yet their pay continues to shrink in real terms.”

 

 

He continued: “This will damage morale across Nottinghamshire. We’re already seeing officers question whether they can afford to stay in the job. These tax changes could push many into leaving the Force.”

Modest earnings

Police officers have already seen their pay fall by around 20 per cent in real terms since 2010, and the latest tax decision means many constables will soon be paying higher-rate tax despite modest earnings.

Mark added: “It’s wrong that police officers - who run toward danger to protect others - are finding it increasingly difficult to cover basic living costs.

“We urgently need fair pay that reflects the role and responsibility of policing.”

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 analysis only strengthens the Federation’s Copped Enough campaign, which continues to push for fair pay, genuine support, and proper recognition of policing.

And Police Federation CEO Mukund Krishna said the situation is ‘deeply concerning’.

He added: “Officers are being dragged into higher-rate tax not because they’re earning big salaries, but because of a system deliberately designed to take more each year. It’s unfair and unsustainable.”

He warned that community safety will suffer unless action is taken to restore pay and stop the exodus of experienced officers.

READ MORE: PFEW secretary calls for urgent reform.