Educational

Union claims victory as ministers agree to fully fund pay rise for teachers in England

National Education Union welcomes news that schools will not have to partly fund increase from their own budgets The UK’s biggest education union is claiming a significant victory after the...

AAdmin
September 16, 2026
3 min read
Union claims victory as ministers agree to fully fund pay rise for teachers in England

The union said the ‘significant’ step would result in an estimated additional £500m of funding for schools this year. Photograph: Monkey Business Images/Shutterstock View image in fullscreen The union said the ‘significant’ step would result in an estimated additional £500m of funding for schools this year. Photograph: Monkey Business Images/Shutterstock Schools Union claims victory as ministers agree to fully fund pay rise for teachers in England National Education Union welcomes news that schools will not have to partly fund increase from their own budgets

Prefer the Guardian on Google The UK’s biggest education union is claiming a significant victory after the government bowed to pressure and agreed to fully fund a forthcoming pay increase for teachers in England in a sudden U-turn.

Members of the National Education Union (NEU) were due to vote in a ballot for strike action next month over the government’s recent pay offer which provided for a 3.5% increase from this month, with an additional 3% from next September.

While the offer was a significant improvement on initial proposals from the then education secretary, Bridget Phillipson, there was concern among teachers and unions that it was not fully funded and schools would have to find almost a third of the wage increases from existing budgets.

After weeks of negotiation over the summer with the NEU general secretary, Daniel Kebede, Phillipson’s successor, Lucy Powell, confirmed on Wednesday in a letter to the union that the entire pay offer would be fully funded, using funds from recent revaluations of the local government pension scheme.

View image in fullscreen Lucy Powell, the education secretary, wrote to the NEU to confirm that the pay offer would be fully funded. Photograph: Gareth Fuller/PA Kebede said it was a “significant” step and would result in an estimated additional £500m of funding for schools this year, which otherwise would have been spent on the pay rise.

“Finally, we have a government that accepts the reality that any teacher pay award must be fully funded,” he said. “Plugging the £460m black hole in school budgets signals a welcome return to reality, and a message of hope for the entire school community.

“Schools have been running on empty for far too long. Leaders simply could not afford to fund the pay award as set out by the previous education secretary. The new administration has accepted that it is wrong to force schools to make cuts to education just to make ends meet.”

Although the NEU national executive is yet to decide on the fate of the national ballot, the government will be hoping its latest gesture – which it regards not as a change of policy but a change in affordability – will lift the threat of strike action and possible school closures.

In a snap poll before the summer break, 97% of NEU members who participated said it was “unacceptable” that their school would have to find the funds to make up the 1.1% shortfall in government funding of the pay rise, and 89% were prepared to take strike action to ensure the teacher pay award was fully funded.

View image in fullscreen Daniel Kebede, the NEU general secretary, said fully funding the pay offer ‘signals a welcome return to reality’. Photograph: Sean Smith/The Guardian In her letter to Kebede, Powell said: “I understand you are concerned the funding available in 26-27 is insufficient to cover the costs of the recent pay award.

“I am therefore pleased to be able to update you that recent…