Ministers to fully fund teachers’ pay rise in England, union says it has won a U-turn

The National Education Union welcomed a government decision to underwrite a planned pay increase for teachers in England, saying schools will no longer be required to meet part of the cost from their own budgets.

Ministers have agreed to fully fund a forthcoming pay rise for teachers in England, the National Education Union (NEU) said, in a reversal of earlier plans that would have left schools to make up part of the cost from their own budgets.

The NEU described the development as a significant victory after mounting pressure. The union had been preparing to ballot members for potential strike action next month in response to a pay offer that proposed a 3.5% increase from this month and a further 3% from next September.

The earlier offer prompted concern among head teachers and unions because schools were expected to find additional funding within constrained budgets, raising fears about cuts to other services or staffing. By agreeing to underwrite the rise, ministers have removed the requirement for schools to top up the pay award themselves, according to the union.

It remains unclear how the NEU will proceed with the planned ballot of members in light of the announcement. The union's initial decision to move towards industrial action reflected wider tensions over education funding and pay levels across England.

The move marks a notable government reversal after talks with teaching representatives and comes amid ongoing scrutiny of public sector pay settlements. Schools and unions will be watching closely for further details on how the funding will be allocated and implemented at the local level.