Teachers in England are set to receive a 3.5% pay rise, a decision that has been met with mixed reactions from education unions. While some view the offer as a step in the right direction, others argue it may not be sufficient and will place additional pressure on already strained school budgets due to partial government funding.

The independent School Teachers Review Body annually considers submissions from various stakeholders, including the government and unions, before making recommendations to ministers on pay awards. For the upcoming period, the Department for Education (DfE) had initially proposed a 6.5% pay award spread over three years, from 2026-27 to 2028-29. However, the final awarded increase is 3.5%.

Concerns have been raised regarding the financial implications for schools. The DfE indicated that approximately £250 million would be available from existing school budgets to cover the rise in the first year of the proposed award (2026-27), with an additional £750 million allocated for 2027-28. This approach, particularly the funding for the initial year, is expected to create significant financial challenges for educational institutions.

Teacher unions, including the National Education Union (NEU), had previously voiced strong opposition to earlier proposals. In May, the NEU stated that a 6.5% increase over three years was unlikely to keep pace with inflation and characterized the initial proposal as an "insult." The union had warned of potential industrial action in the autumn if the government did not address their concerns urgently. An earlier informal ballot indicated that 90.5% of NEU members would be prepared to strike.

NEU members previously participated in strikes over pay in the first half of 2023, leading to school closures for eight days. Further industrial action was called off after the government revised its 2023 offer, resulting in a 6.5% pay increase. Teachers subsequently received a 5.5% rise in 2024 and are slated for a 4% increase in 2025.

In addition to the pay award for school teachers, the DfE announced an extra £485 million in funding for colleges over two years. David Hughes, chief executive of the Association of Colleges, described this as a "very positive announcement" but pointed out that college pay continues to lag significantly behind that of schools and other industries.

Inflation in the UK was recorded at 2.8% in the year leading up to May, which was lower than anticipated by some experts, though further increases are expected. Teachers have expressed concerns about the reality of their workload, with some noting that their paid hours do not reflect the extensive early mornings, evenings, weekends, and school holidays they dedicate to their roles. The pay rise comes against a backdrop of ongoing discussions about teacher workload and compensation.