Tax threshold freeze will ‘drive more officers out of policing’

11 December 2025

West Mercia Police Federation has issued a strong warning that the Government’s decision to freeze income tax thresholds until 2031 will significantly harm officers’ finances and worsen the service’s retention issues.

According to new analysis from the Police Federation of England and Wales (PFEW), almost every police officer will be in the higher-rate tax bracket by 2031,  a shift the Federation argues will devastate morale.

Branch secretary Lesley Williams said the announcement amounts to an additional pay cut at a time when officers can least afford it.

She added: “Officers are already stretched to the limit. Freezing tax thresholds means their pay rises vanish before they even reach their bank accounts. This will hit West Mercia officers hard.

Unsustainable

“We are losing skilled, dedicated officers because the job is becoming financially unsustainable for them. These measures will only speed that up. The Government must act before the situation becomes irreparable.

“We cannot keep communities safe if we cannot retain the people who protect them.”

Police officers have already seen the value of 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.

Lesley continued: “We recognise that alongside this, the Federation's monthly subs are being increased - a necessary uplift to maintain high quality legal, welfare and support for our members at a time of soaring demand.

“However, at a time when the Government is taking more from officers through fiscal drag, it’s vital that members make sure they’re claiming any tax relief they are entitled to - including on their Police Federation subs.

“Even small actions like claiming tax back on subs can make the biggest difference.”

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 it acts as a ‘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 warned that community safety will suffer unless action is taken to restore pay and stop the exodus of experienced officers.

READ MORE: West Mercia officers supporting Christmas toy appeal.