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NQT Golden Hello

Discussion in 'Pay and conditions' started by HobanWashburne, Oct 26, 2010.

  1. Hi all,

    I have read the FAQ on the procedure for obtaining my Golden Hello but I just have a few questions.

    It states that I should apply at the end of induction, does this basically mean at the end of my NQT year?

    In addition it also says that I should receive a form from my training provider, is this my PGCE institution or the school at which I am employed for my NQT year?

    Also wish it was tax free :( ...that would be a huge chunk out of my student loan!
    Thanks.
     
  2. tafkam

    tafkam Occasional commenter

    Yes - or more officially, at the start of your term after completing induction.
    The PGCE institution.

     
  3. Sorry, should I already have this or will it be sent to me after I have completed induction? I'm just concerned as the PGCE institution I was at wasn't the most organised so I will probably never recieve a form knowing them!
     
  4. jubilee

    jubilee Lead commenter

    You should have been given the formwhen you completed the PGCE but can still get a copy from them now.
    Why should the GH be tax-free? It's extra income and so is subject to income tax. It's a fairly recent perk and most teachers never received a penny for staying in the education system. Many of your peer group do not get it either.
    It's financially imprudent to pay off more of the student loan than you need to. The interest rate is low and you can make any spare money work for you with higher savings rates or using it for a bigger deposit on a house or car, instead of paying higher loan interest than the SLC charges.
    Slc interest rate was 0% last year and has just been increasesd to just over 1% for loans taken out in the last 12 years.
     
  5. Wanderer007

    Wanderer007 New commenter

    When I went about claiming my golden hello last year, I had to contact my ITT University provider for a university stamped application form. They were not automatically issued. You complete the relevant sections confirming eligibility, and then forward it to your Headteacher who'll sign it off. The school will forward it to your LEA finance team and the baptism is complete. I had all the paperwork completed by 30/6/10 and the money was in my July pay packet!
     
  6. I didn't say that it shouldn't be tax free, I merely stated it would be good if it was! Golden handshakes are available widely in the private sector and can be extremely more generous. It is nice to get a little bonus, it is there to entice graduates with certain degrees and being a chemistry graduate I apply. However I doubt it does have much effect no one will enter teaching for an extra three grand.

    As for wanting to pay back the loan it may be financially imprudent but I was brought up to pay back my debts and with the loan going up I would like to get it sorted. Plus I don't drive and homeownership is an impossibility for me currently with me being single and on a teachers salary with no family in any position to help me onto the property ladder. Therefore I might as well just pay back the loan.
     
  7. jubilee

    jubilee Lead commenter

    It would be good, too, if pay were tax free I think you'll find that Golden Handshakes in the private sector are also taxable..
    I still caution using any spare money to reduce an Income-contingent student loan. There is little point in being Student Loan Debt-Free but eventually being Mortgage Loan Debt Heavy.
    Put any spare money in an ISA or high interest account and keep moving it when introductory rates drop. You'll then start to build up a potential house deposit/ car purchase (avoiding high interest personal loans for cars).
    My daughter works in London and sees no prospect of buying a house there. However, she earns enough to be able to save and it will form the basis of a house deposit for when she settles outside the capital. Her fellow workers see no point in saving and spend up every month or even go overdrawn.
     
  8. jubilee

    jubilee Lead commenter

    I still caution against ...
     
  9. Having just left university three years ago I have alot of friends who have received 'Golden Handshakes' (mostly in the financial services sector) which have taken into account tax. So they recieve a certain amount after tax.
    I also agree that it would be great if pay was tax free.

    Thanks for the advice but ultimately I will decide on the financial situation that I wish to be in, and thats not purely based about wanting to make money, but in wanting to settle my debts whether that money being owed to the government or otherwise which having been financially prudent are less than half of the average 22 grand student debt.
     
  10. gavcradd

    gavcradd New commenter

    I'm another voice saying don't pay off your student loan with your golden hello money! Make it work for you, put it into an account that pays more than the 1% interest charged on student loans and you'll be better off for it.
    As Martin Lewis (he of the Money Saving Expert website), there's nothing wrong with debt, but there is something wrong with bad debt. Your student loan is a very very VERY good form of debt, you'd be crazy to pay it off while you have other things to do with your money.
     

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