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Teachers in England to Receive 3.5% Pay Rise, Schools Face Funding Gap

Teachers in England are set to receive a 3.5% pay increase from September, with a further 3% in the following year. However, schools will be required to cover the initial 1% of each rise from their existing budgets, prompting concerns from unions about financial strain.

  • Teachers in England will get a 3.5% pay rise from September, followed by 3% the next year.
  • The Department for Education (DfE) has allocated £1.8bn in additional funding, but schools must fund 1% of each rise from existing budgets.
  • The government is implementing tighter controls on executive pay in academy trusts, requiring approval for salaries over £174,000 and preventing higher pay rises for executives than classroom teachers.
  • The National Education Union (NEU) has rejected the offer, arguing that partial funding will lead to further cuts in education.
  • School leaders' union NAHT welcomed the pay rise as a step forward but warned of increased pressure on school budgets due to partial funding.

Teachers in England are set to receive a long-awaited pay rise, but the news comes with a caveat – schools will be expected to foot part of the bill. From September, teachers will see their salaries increase by 3.5%, followed by an additional 3% hike in subsequent years, totalling £1.8 billion in extra funding from the Department for Education (DfE). However, schools will have to fund the first 1% of each pay rise from existing budgets, a condition that has sparked criticism from teaching unions.

The announcement also includes measures to curb excessive senior leader salaries within academy trusts, with any job advertisements exceeding £174,000 requiring government approval. Executive pay rises will not be permitted to outstrip those of classroom teachers, according to Education Secretary Bridget Phillipson, who stated that 'unjustifiable exec salaries become a thing of the past' and reflects the 'immense value we place in our teachers'.

The National Education Union (NEU), England's largest teaching union, has rejected the offer, with general secretary Daniel Kebede stating it falls short despite acknowledging some improvement over the government's initial proposal. The NEU remains concerned that inflation projections mean the pay award does not adequately address real-terms pay cuts experienced by teachers since 2010 or restore the competitiveness of teaching salaries. The union insists on fully funded pay awards to prevent schools diverting funds from other areas.

NAHT general secretary Paul Whiteman described the pay offer as 'another step in the right direction' provided inflation doesn't surge significantly, echoing concerns about partial funding putting pressure on already strained school budgets. The DfE's revised submission followed industrial action by NEU members in 2023 over pay disputes, which resulted in eight days of school closures.

With the current UK inflation rate at 2.8% in May – lower than anticipated but expected to rise – the NEU has indicated it will hold a formal ballot on industrial action this autumn if the government doesn't address concerns 'urgently'. This follows an indicative ballot where 90.5% of members expressed readiness to strike.

The independent School Teachers Review Body typically makes recommendations on pay after submissions from various stakeholders, with ministers making the final decision. The DfE's latest submission proposed a 6.5% pay award over three years from 2026-27 to 2028-29 – an offer now superseded by this more immediate proposal.

Why this matters: This pay rise affects thousands of teachers across England and will impact school budgets, potentially influencing the quality of education and resources available to pupils. It also highlights ongoing tensions between the government and teaching unions over pay and funding.

What this means for you: What this means for you: If you are a parent, this could affect the stability of schooling for your children if industrial action proceeds. For taxpayers, it reflects government spending on public services, and for teachers, it directly impacts their income and working conditions.

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