Labour Cuts £460m from School Budgets After Teacher Pay Rise
Labour Cuts £460m from School Budgets After Teacher Pay Rise

Education Secretary Bridget Phillipson has been accused of imposing a stealth £460 million funding cut on schools after promising teachers a bumper pay rise. The Government is providing schools with £1.8 billion to help pay for a 6.5% pay rise over two years, but has told head teachers that 1% each year must be funded “through continued efforts to maximise value from their budgets”.

Schools Forced to Absorb Costs

Liberal Democrats have written to Mrs Phillipson, warning that schools are already “on the brink” and cannot afford to pay. The letter, signed by schools spokesperson Caroline Voaden and 39 other MPs, said: “With many schools already struggling financially, they will be forced to cut vital teaching assistants, equipment, and extracurricular activities in order to fund these essential pay rises. This is part of a broader pattern of the Government consistently leaving schools to foot the bill. It comes after the underfunding of flagship programmes like breakfast clubs and the free school meal expansion, which have required schools to cross-subsidise from teaching budgets.”

Teaching unions are threatening industrial action unless the Department for Education funds pay rises in full. Daniel Kebede, general secretary of the National Education Union, said: “A partially funded settlement still means cuts to education, and the NEU will never accept that. Schools are being asked to find £460 million from budgets already at breaking point. 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.”

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Union Threats and Government Response

Teachers’ union NASUWT also said “all options, including possible industrial action, remain on the table”. Ms Phillipson said: “Our brilliant school and college teachers go above and beyond every day, and I’m determined that dedication is not just recognised, but rewarded. 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. 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.”

The Department for Education has also announced that from September, trusts will need to seek government approval before advertising roles over a salary of £174,000 in a bid to bring them in line with other public sector workforces such as the NHS. Executives will also not be able to receive higher pay rises than those set for teachers.

Broader Impact on Schools

Charity the Sutton Trust warned earlier this year that schools are already cutting back on staff and reducing help for pupils with special needs as they struggle to balance the books. Pupils are being given fewer choices about the subjects they study at GCSE and A level, with more options becoming unavailable. A survey of 1,105 heads, conducted for the charity by the National Foundation for Educational Research, revealed that seven in 10 schools have cut teaching assistants, half have cut support staff, and three in 10 have cut teacher numbers.

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