New IFS analysis provides the first analysis of what the
announcement of a pay freeze for teachers in England in 2021
means for long-run changes in teacher pay. This shows teacher pay
levels in 2021 will be about 8% lower in real terms than in 2007,
just before the financial crisis. And they are still about 4-5%
lower for less experienced teachers. These represent declines
relative to average earnings, which has now recovered to be just
above the level seen in 2007. This analysis has been supported by
funding from the Nuffield Foundation.
Luke Sibieta, Research Fellow at the IFS, said:
“It is astounding that teacher pay levels remain so far below
what they were before the financial crisis in 2007. The 8% drop
in earnings for more experienced teachers has almost certainly
contributed to the worsening picture on teacher recruitment and
retention. The fact that it has taken a global pandemic and
economic crisis to ease the pressures on the teacher labour
market illustrates the scale of the challenge. To stop these
problems getting worse, the government will need to provide
above-inflation awards from 2022 onwards.”
ENDS
Notes to Editors
This briefing 'The long, long squeeze on teacher pay' by
Jonathan Cribb and Luke Sibieta will be available on the IFS
website at 0001 Friday 23rd July 2021 here: https://ifs.org.uk/publications/15552
The project has been funded by the Nuffield Foundation under the
grant ref EDO /FR-000022637, but the views expressed are those of
the authors and not necessarily the Foundation. It is also
co-funded by the ESRC through the IAA, grant ref ES/T50192X/1
