Commenting on the Government's acceptance of the School Teachers’ Review Body (STRB) recommendation to increase teachers' pay by 3.5 per cent from September 2026, followed by 3 per cent from September 2027, Jack Worth, Education Workforce Lead at NFER, said:
"Today’s teacher pay award is a welcome boost for teachers and could help improve retention since it is above current forecasts of inflation and earnings growth in the wider labour market. However, its longer-term impact on teacher recruitment and retention remains uncertain, as the full implications of the Iran conflict for inflation and wages have yet to feed through into the economy. Inflation and rapidly rising wages could eventually erode the benefit of this uplift.
"If inflation rises further, schools could face additional cost pressures, making it more difficult to absorb the one per cent contribution from existing budgets, particularly if there is no further increase in government funding.
"However, the expectation that schools will, on average, fund the first one per cent of the award will add further pressure to already stretched school budgets, and some schools could face even higher costs depending on their individual circumstances.
“Additional funding and clarity for 2027/28 will also be welcome for school leaders. Also, the £480million of additional funding for further education is a positive step in recognising the pressures facing the sector."