Written statement: Teacher Workforce - July 1
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Secretary of State for Education (Bridget Phillipson): High quality
teaching is the in-school factor that has the biggest positive
impact on a child's outcomes, breaking down barriers to opportunity
for every child. Recruiting, retaining and supporting expert
teachers across schools and colleges is central to delivering high
and rising standards for all children and young people. Despite a
challenging financial context, progress is being made. We have made
a record investment...Request free
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Secretary of State for Education (Bridget Phillipson): High quality teaching is the in-school factor that has the biggest positive impact on a child's outcomes, breaking down barriers to opportunity for every child. Recruiting, retaining and supporting expert teachers across schools and colleges is central to delivering high and rising standards for all children and young people. Despite a challenging financial context, progress is being made. We have made a record investment in schools, with the core schools budget increasing by £1.7 billion in 2026-27, and teacher pay has increased by almost 10% since this government took power. Compared to 2023/24, there are 3,008 more teachers in secondary and special schools,1,646 more teachers in colleges, and the number of trainee school teachers are up 13% on last year. Retention is also stronger across schools and colleges, with leaver rates in schools now at 8.5% - the lowest since at least 2010 (outside the pandemic years). More teachers are returning to state schools than at any point in the last ten years. There is still further to go. That is why our 6,500 delivery plan set out a comprehensive plan for the rest of this Parliament, and our recent White Paper Every Child Achieving and Thriving committed to go further to support and invest in the workforce, including:
This government has prioritised teacher pay. Last year, I accepted in full the School Teachers' Review Body's (STRB) recommendation of a 4% pay award, delivering an increase of almost 10% over two years. Alongside this, we provided an additional £190m to colleges and other 16-19 providers to help them drive forward the recruitment and retention of excellent teachers, building the skills and opportunities our economy needs. This year, I sought the STRB's recommendations for pay awards for the next two years, as well as their indicative recommendation for 2028/29. Today, I am announcing that I am accepting in full the independent STRB's recommendations for the next two years. From September 2026, teachers and leaders will receive a pay award of 3.5%, followed by a further 3% increase from September 2027. I am also accepting the STRB's recommendation to uplift the bottom of the unqualified teacher pay range in the Rest of England by 5%, supporting employment-based routes into teaching, including apprenticeships. Taken together, this means school teachers will have seen a 17% increase in pay since this Government took office, delivering a real terms increase (based on Bank of England CPI forecasts). By September 2027, starting salaries will exceed £35,000, helping to attract talented graduates, while the average school teacher salary is expected to rise to over £54,400, supporting retention and experience in the classroom. I recognise the vital role that school support staff play, and I will continue to build on work already underway, such as establishing the new School Support Staff Negotiating Body. Most support staff have already been offered a 3.3% pay increase in 26-27 through the National Joint Council for local government services process, subject to agreement, and I thank them for their continued contribution to children and young people's education. I am also announcing that from 1 September 2026 executive pay must not rise faster than teacher pay. And for any new appointment where the pay exceeds £174,000, trusts will need to seek government approval before they can even advertise the role in line with HMT Senior Pay Guidance. We want the best leaders running our schools but executive pay must represent real value for money for pupils and parents. Supporting schools and colleges We recognise that the costs associated with the pay awards are higher than what was proposed to the STRB. The department is providing £700 million additional funding for schools in this financial year to support them with the cost of staff pay awards, rising to £1,115 million in 2027-28, on top of the funding already provided in their existing budgets. This additional funding will come from DfE budgets. This significant additional investment, on top of funding increases announced at the 2025 Spending Review (including funding for SEND reform), will see the Department fund the majority of these above-inflation pay awards across both 2026-27 and 2027-28 at a national level. Put together, this investment demonstrates even in a tight fiscal environment this government is prioritising education. Recognising the vital role that colleges and other FE providers play in building the skilled pipeline of workers to power our economy, the department is also providing around £120 million of additional funding for further education in financial year 2026-27, rising to around £365 million in 2027-28, which will come from DfE budgets. This substantial investment will help ensure that young people receive the quality education they need regardless of their setting, furthering their opportunities and supporting economic growth. As we have stated throughout the pay process, schools will need to continue to absorb a portion of the cost of pay awards over the next two years. This is in line with asks of the whole public sector to maximise the impact of every government pound spent. We expect schools to absorb approximately the first 1% of pay awards in both 2026-27 and 2027-28 through implementing plans to realise and sustain better value from their existing spend. This 1% is on average, based on our affordability assessment set out in the Schools' Costs Technical Note (SCTN), and makes an assumption of equal pay awards for all staff in financial year 2027-28. The remaining costs of pay awards above the first 1% will be covered through funding as announced at the 2025 Spending Review, as set out in the 2026 Schools' Costs Technical Note (SCTN), and through the additional funding announced today. Additional funding for 2027-28 will be rolled into the National Funding Formula, which we will publish in the autumn. Taken together, the new funding, existing funding and the 1% absorbed through better value from existing spending are expected to cover the overall cost of pay awards over 2026-27 and 2027-28. Building on the work schools have done last year to contribute towards the cost of pay awards, we are supporting schools to maximise existing resources to deliver this pay award and support every child to achieve and thrive with clear expectations on pay over a longer time horizon. For too long schools and trusts have been left to negotiate commercial contracts alone, working with suppliers with significant resources, specialist teams, and a commercial interest in maximising what they charge. Government has a role to play and through our Maximising Value for Pupils(opens in a new tab) programme we are using the collective weight of the entire school system to push back through:
We expect all schools and trusts to use the new MIS framework, agency supply framework and our new energy for schools service (or approved deals), unless schools and trusts have an alternative compliant agreement with rates which don't exceed those available through these deals. We will update the academy trust handbook by September to reflect these expectations. As with schools, we ask colleges and other further education providers to continue to maximise value from their budgets. The comparable funding we are announcing today will help address immediate staffing pressures in the sector, but providers should continue to leverage opportunities from rising student numbers and effective commercial arrangements to ensure every pound counts in delivering high quality outcomes for learners. Colleges will also continue to have access to a suite of support from the Further Education Commissioner to help them maximise value. Alongside the additional funding in respect of pay and recruitment and retention in 2027/28, there will also be funding adjustments to reflect the valuation of teacher's pensions contributions. From April 2027, schools and colleges will see the costs of their employer contributions to the Teachers' Pension Scheme (TPS) decrease in line with the 31 March 2024 valuations published today. This change will not reduce the value of the defined benefit teachers' pension for current or retired teachers, and the TPS remains one of the best pension schemes available. When schools and colleges have faced increasing pension costs in recent years funding has been uplifted, so it is only right that funding is adjusted for this change. The funding will remain proportionate with contributions at a national level. Building a modern profession The teacher pay award is part of our comprehensive approach to building a system that enables every child to achieve and thrive, reforming education while valuing those who deliver it. I am also committed to delivering on the ambitions of the Children's Wellbeing and Schools Act ensuring every state school teacher can rely on a core pay offer, and building in additional flexibilities to enable all schools to innovate and attract and retain the top talent they need. This is part of my drive to reform working conditions which are fundamental to the quality of teachers' and leader's professional experience. I know that many teachers work significantly more than 1265 hours. To be clear, the department has not proposed the removal, or a specific change, to the current 1265 directed hours limit. On the contrary, I want to build a comprehensive picture on how working hours arrangements interact with and impact on workload, which is why I remitted the STRB for their views on working hours arrangements and I continue to be committed to reducing teacher workload. I am pleased to announce changes to the School Teacher Pay and Conditions (STPCD) that give schools more flexibility with INSET days and clarify protections on leaders' working time. After careful consideration and further review of the evidence put forward by statutory consultees, I have decided not to reduce the salary safeguarding period at this current time and to retain the 3 year existing protection for teachers. I am accepting the STRB's recommendation to enable schools to offer non-consolidated payments/bonuses to teachers, so they too have the option to offer modest recognition schemes to reward their staff. This extends the flexibilities that academies have operated to maintained schools giving them the option to be innovative in their approach to rewarding staff. Technical Annex: Further details on the STRB process and recommendations STRB Process, recommendations, and response
Further details on funding in 2026-27 and funding adjustments to reflect the valuation of teachers' pension contributions Funding for schools We are providing schools with £700 million in additional funding in financial year 202627 rising to £1,115 million in 2027-28 to support them with their overall costs, including teacher and support staff pay awards. The additional funding for pre-16 schools and high needs providers will be distributed through the Schools Budget Support Grant 2026 (SBSG 26), with funding for eligible early years providers being distributed via the Early Years Teacher Pay Grant 2026 (ETPG 26). Funding for 16-19 schools will be distributed via 16 to 19 allocations to support post-16 provision in schools and academies. Through SBSG 26, we will provide £522 million for mainstream schools in respect of their provision for pupils aged 5 to 16; nearly £98 million for high needs providers; and nearly £14 million for centrally employed staff. Nearly £18 million will also be provided in respect of early years provision in schools provided through the EYTPG 26. We will provide around £49 million to 16-19 schools to support post-16 provision in schools and academies. Further information for schools on the methodology, conditions of grant and per-pupil rates, as well as a calculator tool for the additional funding in respect of pay in 2026/27 will be published shortly. The overall design and distribution will reflect previous pay grants. Funding for further education The department is making available additional funding of around £120 million in financial year 2026-27, rising to around £365 million in financial year 2027-28, to support colleges and other FE providers to address immediate staffing pressures and deliver our ambitious skills and qualifications reforms. Taken together with the additional funding for post-16 provision in schools and academies which comes from within the overall schools funding envelope, around £170 million will be available for post-16 funding in financial year 2026-27, rising to around £535 million in 2027-28. Funding adjustments relating to the valuation of teachers' pension contributions Funding for schools and colleges will be reduced to reflect the decreased cost at national level and thus be cost neutral for public sector employers as a whole. Schools and colleges will see the costs of their employer contributions to the Teachers' Pension Scheme (TPS) decrease by £3 billion in 2027-28 following the valuation of teachers' pension contributions. Funding for schools and colleges will decrease by the same amount.
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