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.
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.
"Schools are being asked to find £460 million from budgets already at breaking point," Kebede stated.
Kebede highlighted local impacts, noting that in Makerfield, in Andy Burnham's constituency, 40 schools must collectively find £866,842 from their own budgets to fund part of the pay award.
"This is the equivalent of 8,300 school staff: 3,900 teachers and 4,400 support staff.
Ministers cannot claim to want more teachers while overseeing such a drastic reduction in numbers next year," Kebede continued.
He questioned government funding choices following recent increases in defense commitments.
"At a time of rising defence spending, Government must answer a simple moral question: why is there always money for conflict, but not enough for childhood?"
Kebede asked.
Other school leadership organizations also voiced concern.
Paul Whiteman, General Secretary of the NAHT school leaders' union, said, "But we need to be clear that this is not a fully-funded award and it will mean more pressure on already stretched budgets."
Whiteman criticized the official rhetoric surrounding budget management efficiency guidelines.
"There is very little headroom in existing budgets and talk of 'maximising value' is deeply unhelpful," he added.
Pepe Di'Iasio, General Secretary of the Association of School and College Leaders, highlighted operational difficulties.
"At an individual school and college level the implications will vary and it will be very challenging for many schools to find money from their existing budgets in the way that is required," he said.
Meanwhile, further education institutions welcomed separate funding allocations aimed at staff recruitment.
David Hughes, Chief Executive of the Association of Colleges, said, "We had feared that we were heading towards a potentially very low or even zero pay award recommendation.
It shows that the government has been listening to the case we made as a sector and recognises that its funding decisions are critical for ensuring colleges can address the cost of living crisis their staff face."
Conversely, representatives for academy trusts criticized the administrative oversight introduced by the executive salary caps.
Leora Cruddas, Chief Executive of the Confederation of School Trusts, said, "We should be empowering trusts and local leaders to do what their communities need, not assuming the Department for Education knows best."
