UK teachers secure multi-year pay rise with additional school funding

UK teachers secure multi-year pay rise with additional school funding
UK teachers win pay rise

Teachers in England are set to receive staged pay increases from September 2026 under a multi-year settlement that also brings extra funding for schools and colleges. The package lifts cumulative teacher pay growth to 17% since the general election and adds new limits on high academy trust executive salaries.

Highlights

  • School teachers in England will receive a 3.5% pay rise from September 2026 and a further 3% from September 2027, fully accepted by the government.
  • The pay settlement is supported by £1.8 billion in additional school funding over two years, plus £485 million for further education providers, though schools must absorb the first 1% of each increase.
  • Government measures include average teacher salaries rising above £54,400 by 2027, improved recruitment and retention, and new executive pay controls for academy trusts above £174,000 from September.

Pay award and funding plan

As announced by GOV.UK, the Education Secretary has accepted in full the School Teachers Review Body's recommendations, giving school teachers a 3.5% pay rise from September 2026 and a further 3% from September 2027.

The government says the deal is backed by £1.8 billion in additional funding for schools over two years to support pay increases for teachers and support staff. Schools are still expected to cover the first 1% of each award through budget efficiencies, in line with wider public sector expectations.

An extra £485 million is also being allocated over two years to colleges and other further education providers to help them recruit and retain teachers and continue delivering vocational, academic and technical courses.

Workforce impact and executive pay curbs

Under the settlement, the average school teacher salary is expected to rise to more than £52,800 from September 2026 and to more than £54,400 from September 2027. The government says that equates to almost £7,900 over four years since it took office.

The announcement comes as ministers point to improved recruitment and retention, with more than 4,500 additional teachers in secondary schools, special schools and colleges since 2024. The government also says fewer teachers are leaving the profession and that the number of people starting teacher training has risen 13% this year, marking a post-pandemic high.

From September, academy trusts will need government approval before advertising executive roles with pay above £174,000. Annual rises for executives are also being aligned with those for the wider school workforce, a move the government says is designed to prevent leadership pay from rising faster than classroom teacher salaries.

Our earlier article on the emerging U.S. “mom-cession” explained how labor force participation among college-educated mothers with children under five has fallen, while unemployment for this group has increased. We noted that the pullback in remote work opportunities and persistent childcare shortages have reduced flexibility for parents, adding pressure on recruitment and retention across the labor market.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
Weekly Top Bonuses
up to $2,500
deposit bonus for all clients
CLAIM BONUS
Your capital is at risk.