Jobs and employment. Guidance for conversations on jobs and employment. Trainers Notes for Jobs and Employment with clients

Transcription

1 Jobs and employment Guidance for conversations on jobs and employment Trainers Notes for Jobs and Employment with clients

2 This session pack has been produced as part of Citizens Advice Financial Skills for Life. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, Citizens Advice assumes no responsibility. The user of the information agrees that the information is subject to change without notice. To the extent permitted by law, Citizens Advice excludes all liability for any claim, loss, demands or damages of any kind whatsoever (whether such claims, loss, demands or damages were foreseeable, known or otherwise) arising out of or in connection with the drafting, accuracy and/or its interpretation, including without limitation, indirect or consequential loss or damage and whether arising in tort (including negligence), contract or otherwise. Copyright 2015 Citizens Advice All rights reserved. Any reproduction of part or all of the contents in any form is prohibited except with the express written permission of Citizens Advice. Citizens Advice is an operating name of the National Association of Citizens Advice Bureaux, Charity registration number , VAT number , Company Limited by Guarantee, Registered number England. Registered office: Citizens Advice, 3 rd Floor North, 200 Aldersgate Street, London, EC1A 4HD Citizens Advice Job and Employment trainer notes/july17/v2

3 Jobs and Employment The aim of this session is to help advisers to provide a session to clients that covers the basic needs for financial capability topics related to employment. Objectives are that by the end of this session clients will be able to: Understand how to write a good CV Understand payslips Show basic understanding of tax codes Have some idea of how to handle redundancy Be aware of the important of pensions, and where to go for further guidance. General Guidance Notes on delivering a financial capability session are available elsewhere on the Citizens Advice website. These notes are for the trainers use only. A separate handout pack should be used with every client in the group, which will include signposts for further information and guidance. Trainers are encouraged to feedback to the Financial Skills for Life team with any feedback about training materials or resources. If you have any comments, please contact: financial.skills@citizensadcvice.org.uk Citizens Advice Job and Employment trainer notes/july17/v2

4 Contents Session Specific Guidance 5 Lesson Plan 7 1. CV Tips 8 2. Payslips Exercise 9 3. Payslips Explained Payslips Factsheet Tax Codes Dealing with redundancy Why have a pension? What else will help? 15 Evaluation Guidance 16 Trainers notes Citizens Advice Job and Employment trainer notes/july17/v2

5 Session specific guidance Subject information Trainers do not need to have specialist money advice knowledge or experience but must have a basic understanding of employment features and be able to signpost learners to sources of further advice and information. The pack contains all the key information for the topics covered. Any additional information that is given should be taken from an up to date and accurate source such as: The Citizens Advice website the Money Advice Service at This session aims to help learners understand the basic financial products linked to employment. For this learners should be referred to their local Citizens Advice or other advice agency. Materials Blank flip chart paper Marker pens Note paper and pens for learners Blu tack Calculators Prepared cut-outs for word-matching activity Manage expectations Make it clear to clients that the session is a brief overview of employment-related topics, and the most essential elements of financial capability that relate to them. As a one-off session, there will not be the time to explore any single element in any great detail. Signpost and empower Ensure that clients are aware that after the session they will have a clear idea where to go to answer outstanding queries and to get further assistance Citizens Advice Job and Employment trainer notes/july17/v2

6 Top tips Clients from outside the UK may not understand what a P45 or P60 are, therefore, further explaination may be required for Exercise Citizens Advice Job and Employment trainer notes/july17/v2

7 Lesson Plan Adult Financial Capability Framework references: 1 B (b) 3 2 D (c) 2 3 D (c) 2 4 D (d) 3 5 E (b) 3 6 D (h) 4 7 E (b) This session is intended to take about 60 minutes to deliver. Activities Two, Three and Four all complement each other very well. An adviser may choose to simply give out the factsheet from Activity Four, but that only works if they ve at least gone through Activity Three. Activity Six and Seven can be skipped if time is pressing, but clients should still be signposted to the Pensionwise Red activities Are essential to any session on this topic Amber activities Are highly recommended but not essential Green activities Are optional activities, if time allows The size of the bubble indicates roughly how much time, relative to the session, to spend on an activity Citizens Advice Job and Employment trainer notes/july17/v2

8 Activity: CV Tips AIC 20 Q Writing a CV is a key thing for a client to know how to do. Handout JEA1 is a factsheet of top tips to be given to clients. If there is online access and the client is digitally capable, we would recommend the CV writing materials on Barclays Life Skills website. This site has: several interactive elements covers the language one should use top tips when writing CVs guidance on application forms. The CV builder is the most essential step to take, if time with the client is limited. It will require the client to set up a membership, which is free, to have an online account with the site. If this was of use, why not try The resources from the Digital Money Coach Toolkit? Citizens Advice Job and Employment trainer notes/july17/v2

9 Activity: Pay Slips exercise AIC 20 Q Use handout JEA2 to ask the client to try to answer the following questions about the example payslip. Answers Who is the employer? Cardiff Council When will Mr Daniels receive the money? How is the pay being paid to Mr Daniels? BACS transfer How much pay will Mr Daniels receive this month? How much has Mr Daniels earned this month? 1250 How much has Mr Daniels earned so far this year? 6250 What are the total deductions from Mr Daniels monthly pay? What is his tax code? 1100L How much of his pay this year has been taxed? Which of his three deductions can he choose not to pay? Pensions If this was useful, why not try Jobs and Employment Payslips explained Resource Support Presentations Exploded Payslips glossary Citizens Advice Job and Employment trainer notes/july17/v2

10 Payslips explained AIC 20 Q Payment dates can be monthly or weekly, and at any date in the month Your tax code dictates how much tax you pay. You need to ensure you are not on an emergency code. The tax year starts on 6 th April each year. You receive your National Insurance number when you are 16, and it remains with you for every job you ever hold in the UK. Cardiff Council City Hall Cardiff CF10 3ND NI No. DK M Tax Year beginning 2015 Tax Code 1100L Pay Date Pay Method BACS Transfer Payments. pp Deductions. pp Monthly Salary Income Tax National Insurance Pensions Total Payments Total Deductions Net Pay Year to Date Totals Gross pay Pension Taxable Pay Tax Paid NI Pension payments are voluntary. Net pay is the total pay you actually receive after all deductions Taxable pay is the amount of your pay to date this tax year that has been subject to tax. National Insurance pays for the NHS and state benefits Income tax is a compulsory payment to the government Citizens Advice Job and Employment trainer notes/july17/v2

11 Payslips Understanding your payslip Organisations you work for must provide you with a payslip. You should check your payslips and keep them for at least a year. AIC 20 Q Factsheet Why is important to check your payslip? To make sure you are being paid correctly. To make sure you are taxed correctly. If you are taxed too much you can claim the difference back. You should contact HMRC if you have any queries. If you are taxed too little, you will need to pay it back eventually. Important Tips: P45 When you stop working for an employer you should automatically be given a P45. If you do not receive one then ask for it, you are entitled to it by law and it is really important that you have one. The P45 states all the earnings details from that tax year of that job. You can then give the correct part of the form to your next employer to make sure that you are then not overtaxed or run into problems. If you lose your P45 then you will not be able to get a replacement. P60 A P60 is a statement issued at the end of each tax year (which is in April, not January). It is important a taxpayer does not destroy the P60 forms issued to them, as they are crucial bits of paperwork that cannot be replaced. As an adult, you may be filling in forms that require P60 s for anything up to 20 years of employment. This is why you should keep your P60s permanently safe.

12 Activity: Tax Codes AIC 20 Q Tax codes are a complex and detailed area to discuss with a client. However, this activity does not involve complex calculations or requires detailed exercises. Provide the attached handout for the client to try to answer. Answers 1. What does a tax code look like? A tax code is usually made up of several numbers and a letter, for example: 117L or K Where is it found? It is always on your payslip, P45 and P What does it mean? A tax code tells your employer how much of your earnings can be taxed, and how much tax you pay on it. It is used to calculate the amount of income you can earn without paying any tax at all 4. If you've lost your P45, what code do you use? You ll have to use an emergency code till you get the right one. 5. If you're on an emergency tax code, what does this mean? You re likely to be over-taxed till this rectified 6. If you're starting your first job, what tax code do you use? You need your tax code: if you do not have this, your employer will ask you fill in a P What if you pay too much tax? You will get a refund as a tax credit. What if you don t pay enough tax? Your tax code can be amended to collect the underpaid tax in the current tax year or, if not, in a later tax year Citizens Advice Job and Employment trainer notes/sep16/v2

13 Activity: Dealing with Redundancy AIC 20 Q Being made redundant is often a major shock to a client s finances and they can find it incredibly stressful to deal with the significant reduction to their income. Dealing with redundancy is, strictly speaking, out of the realm of financial capability and moving into the area of debt advice. However, there are some basic steps that an adviser should help a client consider when discussing their situation. In each case, further recommendations for financial capability are listed below. However, often a debt intervention is the most sensible course of action. Budgeting guidance from our Budgeting section could help, with spending diaries, budget sheets, tips to reduce expenditure and maximise income. Our Debt sections offers guidance on how to take control of debt issues, large and small. The Credit section is recommended for clients who may find that they are turning to borrowing to make ends meet, or even to buy the occasional luxury. The Energy and Water section of our resources contain a lot of useful exercises linked to switching and saving money: the client may also benefit from an EBD session Citizens Advice Job and Employment trainer notes/sep16/v2

14 Activity: Why have a pension? AIC 20 L Split the room into separate groups and give the clients a time-limit to come up with as many reasons to have a pension as they can. Alternatively, in a one-toone session, ask the client to try to list as many reasons to have a pension as they can in a time limit. The following discussion points are offered as guidance: A pension is money you'll use to live on when you retire. Most people get a State Pension but this only provides for your basic needs. The help offered by the state can change over time. If your retirement is a long way off you shouldn't assume that all your needs will be covered by state benefits, or that State Pension rules will be the same as now. You can put aside money during your working life into a pension fund. When you reach retirement age, you get your pension to live off for the rest of your life. The amount you get will depend on how much you have saved. There are several ways you can save for a pension. Your employer may offer a workplace pension scheme or you can take out a personal pension through an insurance company. You may do both during your working life. As well as paying into a pension scheme, you'll also be paying National Insurance Contributions throughout your working life. This builds up your entitlement to the State Pension. You can get this on top of any workplace or personal pension you save for. The maximum basic State Pension is (tax year ) a week. If this was of use, why not try Directing the client to the Pensionwise service (if they are eligible and need further guidance). Further information on pensions is available online, or they can seek financial advice Citizens Advice Job and Employment trainer notes/sep16/v2

15 Activity: What else will help? Using the attached handout to ask the client to pick which topics they think will help them improve their budgeting skills. Reassure the clients that all these topics are options that they can cover with their local Citizens Advice if they want to. Make sure you take the sheets in from the clients; these can then be kept on their records. They also provide valuable feedback for the Financial Skills for Life team and copies should be returned with the session s feedback forms. If the client finds the following interest, why not try Having cheaper bills Budgeting Maximise income reduce outgoings Energy and Water Saving energy in the home Understanding how to budget Budgeting Budget building guide Knowing where to get the cheapest gas and electricity Energy and Water How to switch energy companies Understanding payslips and job-related paperwork Jobs and Employment Payslips Knowing the best ways to save and to borrow Credit Ten credit tips factsheet Citizens Advice Job and Employment trainer notes/sep16/v2

16 Evaluation Guidance Areas that underpin client financial capability These are the Citizens Advice Financial Capability Areas that were carefully researched and developed by The Impact Team at Citizens Advice to help local offices measure client financial capability robustly and consistently across services. They were developed in line with the MAS UK Financial Capability Strategy Adult Outcomes Framework. Sample questions and scales can be found overleaf. An Impact Tool is available in Petra for recording responses and progress. Keeping track of money Keep track of money going out, money coming in and calculate what's left over. Check my current balance and keep my papers in order. Having enough money to live Have enough money to cover the basics I need to live like food, housing and electricity. Looking for the best deals Look at different options and buying the best deal for things like food, clothes, large items or services like phone, electricity or insurance. Get different opinions on what I am buying, like from reviews and comparison websites. Controlled spending Spend or save only what I can afford after covering the basics I need to live, like food, housing and electricity. Planning ahead with money Know when my bills and payments are due and keep on top of priority bills, like for electricity, loans and council tax. Put some money aside for big or unexpected costs. Staying informed about money services Read the main information about money services I get like banking, benefits and loans. Stay on top of changes to these or get help when I don t understand. Mindset Confidence about taking action on my money matters. Copyright 2015 Citizens Advice All rights reserved. Any reproduction of part or all of the contents in any form is prohibited except with the express written permission of Citizens Advice. Please note these areas, questions and scales are owned by Citizens Advice and subject to copyright restrictions so reproduction must include the relevant copyright statement above and no changes to its wording, response categories or layout must be made. For further information please contact Satdeep Grewal on satdeep.grewal@citizensadvice.org.uk or

17 Sample questions and scales for measuring client financial capability These questions can be used to ascertain how good someone s financial capability is and so, what their level of need is. They also allow you to track progress by being used to follow-up with how someone is getting on after you have helped them. Score 1 to 3 Score 4 Score 5 to 7 Low financial capability Average financial capability Advanced financial capability High need Medium need Low need Keeping track of money Calculate money going out, money coming in and what's left over. Check my current balance and keep my papers in order. Rate your knowledge about the above How often do you do the above? No No to some Some Some to Good knowledge knowledge knowledge good knowledge knowledge Good to Excellent Don t know excellent knowledge knowledge Never Never to Sometimes Sometimes Often Often to Very often Don t know sometimes to often very often Staying informed about money services Read the main information about money services I get like banking, benefits and loans. Stay on top of changes to these or get help when I don t understand. Rate your knowledge about the above: How often do you do the above? No No to some Some Some to Good knowledge knowledge knowledge good knowledge knowledge Good to Excellent Don t know excellent knowledge knowledge Never Never to Sometimes Sometimes Often Often to Very often Don t know sometimes to often very often Mindset How much confidence do you have about taking action on your money matters? No No to some Some Some to good Good Good to high High Don t know confidence confidence confidence confidence confidence confidence confidence Copyright 2015 Citizens Advice All rights reserved. Any reproduction of part or all of the contents in any form is prohibited except with the express written permission of Citizens Advice. Please note these areas, questions and scales are owned by Citizens Advice and subject to copyright restrictions so reproduction must include the relevant copyright statement above and no changes to its wording, response categories or layout must be made. For further information please contact Satdeep Grewal on satdeep.grewal@citizensadvice.org.uk or

18 Trainers notes Citizens Advice Job and Employment trainer notes/sep16/v2