The UK Department for Education announced on Wednesday, July 1, 2026, that teachers in England will receive a 3.5% pay rise this September and a 3% increase in September 2027.
Education Secretary Bridget Phillipson accepted the independent School Teachers' Review Body recommendations, providing £1.8 billion in additional funding over two years.
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However, schools must fund the first 1% of the raises from existing budgets.
"This multi-year deal, backed by significant additional investment, shows the immense value we place in our teachers, while giving schools and colleges certainty over pay and their budgets," said Phillipson.
The government also introduced new rules requiring academy trusts to seek approval for executive salaries exceeding £174,000 from September.
"It's also right that classroom teachers are not seeing executive pay rise faster than their own – or set at excessive levels in the first place – so tighter controls will mean unjustifiable exec salaries become a thing of the past, helping level the playing field for school staff and drive every pound towards classrooms," Phillipson added.
Union Reactions and Funding Shortfall
The National Education Union expressed dissatisfaction with the partial funding mechanism, noting that schools must absorb £460 million, which could impact staffing levels.
"A partially funded settlement still means cuts to education, and the NEU will never accept that," said Daniel Kebede, General Secretary of the NEU.
The union is currently evaluating whether to proceed with a formal autumn strike ballot over the funding shortfall.
