Financial wellbeing Non-consolidated payment & Voluntary Living Wage FAQs

Voluntary Living Wage

The voluntary living wage increased from £9.90 an hour to £10.90 an hour. For staff in the University in the lowest pay point (point 3) this meant that the hourly rate paid increased from £9.90 an hour to £10.36 an hour in August as a result of the nationally negotiated pay award (an increase of around 5%).

The new voluntary Living Wage rates will mean that the hourly rate for staff in Grade 1 will now increase to £10.90 an hour from the 1 October 2022. Together with the nationally negotiated pay award implemented in August this is a 10.1% increase in hourly rate from the previous rate Living Wage Rate of £9.90 an hour.

Non-consolidated payments

This is a one-off payment that does not affect your normal salary level.  This additional support is in recognition of the pressure on household budgets created by rising energy costs and increasing inflation and is intended to provide additional help to colleagues at this unprecedented time.

It will apply to all staff in post on 1 October 2022 who are still employed in November 2022. (Except for members of the Executive Team.)

The Executive Team has approved a non-consolidated payment for all staff, weighted according to grade, to be made in November salaries.

  • staff in grades 1-5 will receive a pro-rata payment of up to £700
  • staff in 6 and 7 will receive a pro-rata payment of up to £500
  • grades 8 and above will receive a pro-rata payment of up to £400.

This payment will be pro-rated according to hours worked for part time staff, with a minimum payment of £50.

The payment will be pro-rated based on your contracted hours. This means that payment will be adjusted in line with the number of hours that you are contracted to work compared to a full-time member of staff. For example, staff on grades 1-5 who are contracted to work 17.5 hours a week (0.5FTE - half the number of hours a full-time member of staff works) will receive a payment of £350.

Those receiving benefits may wish to spread the payment over more than one month.  If you wish to spread your payment over either two or three months then please confirm this in writing to Human Resources, McCance Building, 16 Richmond Street, Glasgow, G1 1XQ or email us at by Friday 11 November 2022.

Interaction with benefits

Yes. The payment is part of your wages so tax and national insurance deductions are applied as they would normally depending on the level of income earned.

It is possible, depending on your circumstances, that benefits could be impacted by receipt of this payment. It is likely that most individuals will be better off overall receiving this payment but it is important to ensure that you understand your own personal benefits circumstances to ensure you will not be disadvantaged by receiving this additional payment.

The benefits detailed below (means tested income linked) could be affected because of this payment:

  • Universal Credit
  • Tax Credits (legacy benefits)
  • Pension Credit
  • Scottish Child Payment
  • Carer’s Allowance
  • Jobseeker’s Allowance (new style)
  • Employment and Support Allowance (ESA) (new style)

Universal Credit adjusts automatically but for other benefits you should report the additional payment to the DWP, HMRC (tax credits annual review) or any other benefits office administering a benefit to you determined by your income.

This may not be an exhaustive list; you should review your own benefits and check the eligibility criteria as to whether they could be affected because of this additional payment.

The following benefits, broadly non-means tested, would not be affected by this payment if this is the only benefit you are receiving:

  • Attendance Allowance
  • Bereavement Support payment
  • Child Benefit (but be aware of thresholds for additional tax liabilities)
  • Disability Living Allowance (DLA) (due to be replaced by rollout of Adult Disability Payment during 2022)
  • Guardian’s Allowance
  • Industrial Injuries Benefit
  • Lump-sum bereavement payments
  • Personal Independence Payment (PIP) (due to be replaced by rollout of Adult Disability Payment during 2022)
  • Severe Disablement Allowance
  • State pension
  • Statutory adoption, maternity, or paternity pay
  • Statutory paternal bereavement pay
  • Statutory sick pay

Means tested, income linked benefits would be reduced or could stop if you receive the payment. Additional detail is given below for the most common benefits.

Universal Credit

The amount of Universal Credit you receive depends on your income. Universal Credit is calculated based on monthly income. By receiving additional income, the next monthly Universal Credit payment will go down or you may get no Universal Credit payment in that month. The following month your Universal Credit should return to normal. Generally, your Universal Credit payment will reduce by 55pence for every extra £1 of extra pay. You should be better off as the additional payment you get is more than the Universal Credit you lose. If your normal Universal Credit payment is low, then the payment may stop for a month.

Your regular Universal Credit payment should recommence automatically the next month. You can monitor this via your online Universal Credit account and/or seek advice.

Tax Credits and Legacy Benefits

The amount of Tax Credit and Legacy Benefits you receive depends on your income.

Tax Credits are calculated based on annual income. When the additional payment is received there would be no immediate change in your Tax Credits payment. The additional payment you receive should be included when you complete your annual review and annual declaration. So, the additional payment wouldn’t affect your Tax Credits until the new annual Tax Credits award begins.

If because of the payment Tax Credits or legacy benefits stop, you will need to make a new claim. These benefits have been transferred for new claims to the Universal Credit regime. A claim would need to be made under this system for equivalent benefits to resume.

  • Housing benefit (contact local authority housing benefit department)
  • Income support (contact DWP)
  • Income-based jobseeker’s allowance
  • Income-related employment and support allowance (ESA)

Pensions Credit

If you claim Pension Credit whilst you are working, then it will be reduced because of the additional payment. You should report the additional payment to the DWP.

Scottish Child Payment

Paid to families for each child only where the family receives other qualifying benefits. These include Universal Credit or Tax Credits. When you receive the additional payment, if the qualifying benefit that makes your family eligible for the child payment stops, you should report this to Social Security Scotland. This will mean the child payment will stop. When the benefit restarts you should also tell Social Security Scotland and the child payment will restart. If your qualifying benefit doesn’t stop then you will continue to receive the child payment.

Carer’s Allowance

If you receive a carer’s allowance whilst working, it will stop if you earn more than £132 per week. The additional payment should be reported to the DWP.

The effect of the payment could potentially be reduced if you decide to take the payment over a period of 2 or 3 months rather than one lump sum payment. This would mean the impact on the benefits you receive would not be as great in one month and there would be a smaller monthly reduction to benefits as the additional payment is spread over 2 or 3 months. Spreading the payment over 2 or 3 months may also prevent benefits stopping altogether.

Whether the payment is taken in one month or spread over 2 or 3 months the impact on your benefits will be specific to your own circumstances. Please review your own circumstances carefully to ensure the most advantageous outcome. See below for payment options and where to take advice.

  • Accept the one-off payment as a lump sum payment, or
  • Accept the payment and request it is paid in instalments over 2 or 3 months, or
  • Decline the payment.

If you decide to accept the payment made by instalment or if you wish to decline the payment please notify Human Resources by emailing or writing to the Human Resources Department in the McCance Building stating your name and the number of months you would like to spread the payment over by Friday 11 November 2022.

Student loans

The payment could result in a requirement to make repayment(s) on your student loan. This would happen if the payment means your earnings are above the threshold to begin repayments and you have passed the April after you graduated.

If you took out the student loan on or after 1998, repayments will be taken from your wages. These repayments will be shown on your wage slip. You start paying the loan back when you earn more than a certain amount, known as the ‘salary threshold’. The current salary threshold is £25,375 per year or £2,115 per month or £488 per week.

If you’re a Scottish student who started an undergraduate or postgraduate course anywhere in the UK on or after 1 September 1998, you would make payments under repayment Plan 4. This means you pay 9% of the income you earn over the threshold to the Student Loan Company (SLC). The payment percentage stays the same if your salary rises.

Example: an employee earns £28,600 per year. This is £3,225 above the £25,375 threshold. 9% of £3,225 is £290. The employee will pay £290 per year, as long as their salary remains the same. This would be paid equally each month assuming monthly paid.

If your salary drops below the salary threshold your payments will be stopped. They will only start again when you go over the salary threshold.

If you took out the loan before 1998 or if you are an English, Welsh or Northern Irish student or EU please contact the Student Loans Company for detail.

Yes. If you make student loan payments in the month(s) you receive an additional payment the amount you repay towards your loan will increase. The amount of the increase will be 9% of the additional amount above the salary threshold. This assumes you’re a Scottish student who started an undergraduate or postgraduate course anywhere in the UK on or after 1 September 1998, you would make payments under repayment Plan 4.  The percentage repayment of 9% stays the same if your salary rises. When your salary payment returns to your normal amount then the loan repayment will adjust accordingly.

If you took out the loan before 1998 or if you are an English, Welsh or Northern Irish student or EU please contact the Student Loans Company for detail.

It is expected that most people will be better off overall by receiving this payment but you will need to consider your own personal [benefit] circumstances and decide if you would like to receive this payment or not.

It is recommended you review your personal circumstances and if uncertain of the impact this payment may have for you seek advice.