The Institute for Fiscal Studies (IFS) has dealt a blow to the government's education plans, describing new teacher pay rises and school funding allocations as insufficient to reverse a decade of real-terms cuts. Despite a rise in starting salaries to £30,000 and 5% and 6.5% pay increases for experienced and new teachers respectively, the IFS analysis reveals that most teachers will still be earning less in real terms than they did in 2010.
The Department for Education confirmed that teacher starting salaries will reach £30,000 from September 2023, meeting a manifesto commitment. Experienced teachers are set to receive a 5% pay rise, with new teachers benefiting from a 6.5% increase. However, the IFS highlights that despite these rises, the average teacher's salary will remain 7% lower in real terms than in 2010, even after accounting for the latest inflation figures.
Alongside the pay rises, an additional £2.3 billion in school funding has been allocated for 2023-24 and 2024-25. The IFS indicates that while this funding is intended to cover the costs of the pay increases, it leaves little room for schools to address other rising expenditures, such as energy costs and support staff.
The report notes that despite these recent injections of cash, total school spending per pupil is projected to remain below 2010 levels in real terms for the foreseeable future. This long-term trend of underfunding raises concerns about the capacity of schools to maintain current standards, let alone invest in improvements or new programmes.
The implications of these findings are significant for teacher recruitment and retention. With real-terms pay continuing to lag, attracting new talent to the profession and preventing experienced educators from leaving could remain a considerable challenge.