The UK Labour government has reversed its earlier stance on teacher pay, committing an additional £500 million to fully fund a 3.5% pay rise for teachers this year and 3% next year. This move is seen as a concession to union pressure and averts potential strike action.
Previously, schools were expected to cover approximately half of the pay increase through their existing budgets, with the remainder coming from government funds. The National Education Union (NEU), representing 500,000 members, had warned of strike ballots this autumn if the government did not fully fund the rise, estimating that schools would need to find around £460 million from their budgets.
Education Secretary Lucy Powell confirmed in a letter to NEU General Secretary Daniel Kebede that savings derived from lower pension contributions would be used to fund this year's pay rise. These savings, estimated at £500 million, are being made available to schools and will not be reclaimed by the government.
"I am therefore pleased to be able to update you that recent revaluations to the Local Government Pension Scheme will see a 4.9ppt reduction in employer contribution rates and deliver significant savings on schools' pay bill for support staff," Powell wrote. "We can confirm this reduction in costs will not be clawed back, and as such, we are confident that schools will be able to cover the costs of the teacher pay award, at a national level."
Kebede welcomed the government's decision, stating, "Finally, we have a government that accepts the reality that any teacher pay award must be fully funded. Plugging the £460 million black hole in school budgets signals a welcome return to reality, and a message of hope for the entire school community."
He attributed the government's change of heart to the NEU members' willingness to take a stand and emphasized that schools have been underfunded for too long. The NEU executive is scheduled to discuss its formal response to Powell's letter on September 24.
The initial announcement of the 3.5% pay rise in July had stipulated that 1% was expected to come from schools maximizing value within their existing budgets, with an additional 0.8% also to be sourced from these budgets.