Pay rise

[mumof3]

My husband just had a small cost of living payrise at 7%. The payrise does not take us over 10% of his income in which we would pay 50% over. Do we inform IP of payrise or wait till review?

[Foggy]

My husband just had a small cost of living payrise at 7%. The payrise does not take us over 10% of his income in which we would pay 50% over. Do we inform IP of payrise or wait till review?

It does not work like that -- the permanent payrise has not got a 10% disregard in the way that overtime has. Assuming you have the usual clauses a permanent pay increase is taken into consideration at the annual review following the rise and the IVA payment increases by 50% of the pay increase from the month following the review.You are supposed to declare the rise as soon as you get it though.
You do need to read your proposal carefully to see exactly what your clauses say (some do differ) as it has been known for an IP to take the increase right away, when they were not allowed to do so!

[mumof3]

Thank you! I am going to read my proposal tomorrow but will inform IP.

[adam355]

My wife and I have both had a pay rise recently, amounts to about £150 per month between the two of us. My IP is still looking at the payslips to calculate the increased payments but has told me that the increased payments will start immediately, not at the anniversary of the IVA.

I'm a little confused to be honest as the proposal that went to my creditors has the clause in it stating that increased contributions would take effect on the anniversary of the agreement.

The IVA agreement itself (signed by me and the IP) states that the IP and I must come to a satisfactory agreement over any increases in income. This is from the document:

You must come to a satisfactory arrangement with the
Supervisor as to what increased amount should be paid into the arrangement.
If you do not do so you could become liable as detailed in paragraph 10(8).

So I am really not sure if I can hold them to the anniversary thing. The OP may not find the answers they are looking for in their agreement - I didn't......

[Foggy]

My wife and I have both had a pay rise recently, amounts to about £150 per month between the two of us. My IP is still looking at the payslips to calculate the increased payments but has told me that the increased payments will start immediately, not at the anniversary of the IVA.

I'm a little confused to be honest as the proposal that went to my creditors has the clause in it stating that increased contributions would take effect on the anniversary of the agreement.

The IVA agreement itself (signed by me and the IP) states that the IP and I must come to a satisfactory agreement over any increases in income. This is from the document:

You must come to a satisfactory arrangement with the
Supervisor as to what increased amount should be paid into the arrangement.
If you do not do so you could become liable as detailed in paragraph 10(8).

So I am really not sure if I can hold them to the anniversary thing. The OP may not find the answers they are looking for in their agreement - I didn't......

You have found the answer: "increased contributions would take effect on the anniversary of the agreement." Your IP is acting outside of the terms of the agreement if he applies the increase before the annual review. The only way he can get around that is if you have asked for an interim review (i.e asked for changes in expenditure to be considered now, rather than waiting until the usual review). Otherwise - challenge your IP !

[mumof3]

I’ve informed my IP so will see what they say.
My clause says exactly the same as above. Are you with stepchange by any chance? I can’t see anything in mine about IVA anniversary.

[MerlinL14]

I must admit, I had 2 good pay rises during my IVA. One was pretty substantial, I told my IVA company straight away and was delighted with the email reply that said it would be actioned on the next yearly review, which was near 10 months away! I hope you get it sorted amicably and without stress. The initial reply may have just been from a desk jockey, so you need a written confirmation directly from your IP after parrot fashion stating what is written in your proposal.

[adam355]

I’ve informed my IP so will see what they say.
My clause says exactly the same as above. Are you with stepchange by any chance? I can’t see anything in mine about IVA anniversary.

I'm with Middlebrooks. The lady I deal with is on leave this week so I will catch up with her on Monday. There is little point in trying to speak with someone else and explaining things from scratch. You get your own personal contact with Middlebrooks which is mainly positive but does leave you a bit lost when they are on holiday!!

Anyway, wracking my brains and I think she did mention doing a full IE assessment so if thats the case I guess any change in payments would take affect from the first payment following the assessment, have I got that correct?

[Foggy]

I’ve informed my IP so will see what they say.
My clause says exactly the same as above. Are you with stepchange by any chance? I can’t see anything in mine about IVA anniversary.

I'm with Middlebrooks. The lady I deal with is on leave this week so I will catch up with her on Monday. There is little point in trying to speak with someone else and explaining things from scratch. You get your own personal contact with Middlebrooks which is mainly positive but does leave you a bit lost when they are on holiday!!

Anyway, wracking my brains and I think she did mention doing a full IE assessment so if thats the case I guess any change in payments would take affect from the first payment following the assessment, have I got that correct?

If they do a full interim assessment then, yes, the increase falls from that assessment it seems from earlier posts, although I do not agree with that interpretation as the T's & C's specifically refer to the annual review and I see no need for an interim review if everything else is much the same. On the plus side, if you do much overtime, the increase will also increase the 10% disregard, so .... swings and roundabouts.

[mumof3]

I got a reply from step change. I don’t need to pay any of the pay rise over as it isn’t over 10% if income.

[kallis3]

Good news.

[adam355]

This is still ongoing for me. When I spoke to my IP they told me that they intended to do a full IE assessment and then use the outcome of that to assess how much of my back pay (i was told to expect to hand over all of it) that I would need to pay as well as by how much my contributions would increase. I got the distinct impression that they were expecting me to hand over all of teh additional income following my pay rise.

So this is my situation:

• NHS pay rise for my wife and I (interlocking IVAs) backdated to 1st April 2018
  The rise was applied to our Julys salaries (about an extra £150 NET between us)
  The back pay is due at the end of August (about £450 NET between us)

My first payment was 1st October 2017

My proposal states that an annual review will take place no more than three months before the anniversary of my IVA. So we are in that window now. If the IP comes back on Monday and says they want to do an IE assessment then thats fine as that is in the proposal.

Proposal also states that 50% of any excess income generated by a salary increase will be payable from the next payment following the annual IE assessment. Also fine with this too.

Lets deal with this bit first as I'm confused. My mortgage has gone up in the last year by about £50 per month. My payments haven't changed since the increase.
Therefore my IE assessment is going to show an additional income of £100. Thats the £150 pay rise minus the £50 that my mortgage has increased by.
So my question is - should my payments increase by 50% of the increased income amount (£100) or 50% of my pay rise (£150)

Next up - my back pay, a lump sum of £450
This is not overtime, additional work etc so should it be assessed under the 10% 50/50 rule? Im not sure
What this is is my pay increase that I should have been on my monthly salary since April. It wasnt applied in April as the unions were arguing with the government about the % of the pay rise.
If it had gone on since April then according to my proposal this would have been dealt with at my next annual review. Therefore I would have kept the lot until my IE assessment.
If its treat under the 10% 50/50 rule then I wont keep it all which doesn't seem particularly fair as its not my fault the unions argued with the government.

IP is contacting me on Monday and I suspect they are going to try and get me to hand over all of the back pay and all of the pay rise immediately. I am of course going to do no such thing and push back very firmly.

If I could get some guidance around the points Ive raised above then that will help me greatly on Monday.

Good job I come of here really, I suspect a lot of folk may just hand the money over........

[Foggy]

Hmmmm .. This is my take on it, others might have different ideas: first ... the increase: After the I&E, in which you will declare the increase in mortgage payments, amongst other things, the IVA payment should increase by 50% of the NET increase in disposable income.

Now, back pay: This is, basically no different from had they paid the increase from April, spread out in the monthly paypackets from the date the rise became effective, so, in my mind, should be treated the same as the permanent pay rise in that it should all be yours until the annual review and only the net increase taken into account thereafter. That is the way my IP dealt with my meagre pay rises at the time.

Read up on your relevant clauses and be able to quote the agreed terms, whilst asking them under what authority / agreement they claim more than those agreed terms.