Long-awaited teacher pay certainty welcomed

The government has today made two important announcements on teacher and leader pay. Teacher pay has been confirmed for the next two years for all schools that follow the school teachers' pay and conditions document (STPCD) – all maintained schools and most (soon to be all) trusts – while new measures have been introduced to control the growth of executive pay in trusts.

On teacher pay, the government has today confirmed its plans for the next two years with its response to the School Teachers’ Review Body (STRB). Teacher pay will rise by 3.5% in September 2026, and then by a further 3% in September 2027. This year’s 3.5% figure is above both the current Retail Price Index (RPI) and Consumer Price Index (CPI) measures of inflation, although there are fears inflation may rise in the coming months.

Schools will receive additional funding to cover most, but not all, of the pay rise – 1% will still need to be found from existing budgets, an improvement on the initial Department for Education (DfE) proposals but still a challenge for many boards. The STRB response also includes several other tweaks to teacher pay and conditions, such as more flexibility around INSET days.

On leader pay, the government has also announced new measures to curb excessive executive pay in trusts, addressing a long-term NGA concern. The Academy Trust Handbook will include new measures to ensure any salary above £174,000 requires Department approval; limit bonuses without approval to below £25,000; and ensure executive pay cannot rise faster than teachers.

Emma Balchin, NGA Chief Executive, said:
“There is much to welcome in today’s announcement, and we are grateful that the government has listened to long-standing NGA calls on both teacher pay certainty and the need to address excessive executive pay in trusts.
We welcome the fact that the government have delivered a two-year pay settlement today with an indicative third, meeting another long-term ask of NGA and its members for multi-year pay awards. While this year’s award is late, boards will benefit from this new certainty in the years ahead, allowing more informed and strategic budgetary planning.
On teacher pay, the increases broadly meet NGA’s minimum asks for a pay increase in line with or above inflation, with funding largely from the central government. Nonetheless, it is important to recognise that the award barely exceeds inflation, so it will not make a meaningful impact on the current retention and recruitment challenges facing the sector. The requirement for boards to find 1% from existing budgets will still present a real challenge, particularly where finances are already stretched and there is now limited time to find savings.
On executive pay, this is a significant moment. NGA has raised concerns about unchecked executive pay for years, on behalf of trustees and indeed executives who’ve often had to defend difficult pay decisions without clear backing. Ministerial approval for salaries above £174,000, a cap on bonuses without sign-off, and a rule tying executive pay growth to teacher pay growth gives boards real levers, not just guidance. While there is still room to go further, and NGA has previously indicated the need for a banded framework, we recognise that this needs significant development time to get right. The announcement today in the meantime addresses the substance of what we’ve been calling for, and that matters more than the mechanism.
We thank the government for listening to NGA’s advocacy on this issue, which has reflected the views of many trustees.”