Schools in England are to receive approximately £500 million in extra funding towards the teachers' pay award for the current school year. This additional funding may reduce the risk of a strike ballot by the National Education Union (NEU), the largest education union.
Previously, schools were expected to fund some of the 3.5% teachers' pay increase for the current school year from their existing budgets, a point strongly opposed by NEU leaders. Daniel Kebede, the General Secretary of the NEU, described the offer of more funding as a "significant" step in negotiations.
The government confirmed in a letter to the union that the increase would be funded by savings in employers' contributions to the local government pension scheme. A 4.9 percentage point drop in employer contributions is expected to deliver "significant savings" on the pay bill for support staff, which will not be reclaimed by central government.
The NEU's national executive is scheduled to meet on 24 September to consider whether to call off a formal ballot for industrial action. An indicative ballot in April saw 90% of voting teachers prepared to take action over funding and pay, with a formal ballot previously set to begin on 3 October.