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Schools in England get extra £500m in bid to avoid teachers' pay strike

Schools in England get extra £500m in bid to avoid teachers' pay strike

Summary

Schools in England will receive about £500 million more to help pay for a 3.5% teachers' pay raise this school year. This extra money reduces the chance of strikes by teachers since the biggest teachers’ union had opposed funding the pay increase from existing school budgets.

Key Facts

  • Schools were expected to fund part of the 3.5% pay raise from their current budgets.
  • The National Education Union (NEU), representing teachers, strongly opposed this plan.
  • The government will provide about £500 million extra funding to support the pay increase.
  • This money comes from savings on employer contributions to the local government pension scheme.
  • The pension savings reduce the overall pay costs for support staff and will not be taken back by the central government.
  • A previous plan included a 3.5% pay rise in 2026 followed by a 3% rise in 2027, with separate extra funding for those years.
  • The NEU had shown strong support for strike action in an earlier ballot but may reconsider after the new funding offer.
  • A formal teacher strike ballot was scheduled from October to December 2026 but could be called off depending on the union’s next decision.
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