The UK’s largest education union is “considering all options” including a formal ballot for industrial action, after the government announced that schools will be required to partially fund teacher pay rises.
The National Education Union (NEU) is reacting to the Department for Education‘s (DfE) decision that schools must cover the initial 1% of each pay award, despite accepting recommendations for increases.
Teachers are set to receive a 3.5% pay rise from September, followed by a 3% increase from September 2027, as per the School Teachers’ Review Body (STRB) recommendations.
However, the DfE’s stipulation that schools absorb part of these costs has ignited controversy.
Unions had consistently called for any pay increase to be fully funded by the government.
This demand follows the DfE’s own evidence to the STRB last October, which suggested a 6.5% pay rise spread across the 2026/27, 2027/28, and 2028/29 academic years.
The NEU had previously warned earlier this year that it would initiate a formal strike ballot in October if a fully funded, above-inflation pay offer was not made.
On Wednesday, following the Government’s teacher pay announcement, a spokesperson for the NEU told the Press Association: “We are considering all options.”
Additional funding of £1.8 billion will be provided to schools over two years to support pay rises for teachers and support staff and an additional £485 million will be provided to colleges and further education providers over the same timeframe.
The DfE also announced that academy trust executives’ pay will be capped at £174,000 from September.
Trusts will need to seek government approval before advertising roles over that salary.
Daniel Kebede, general secretary of the NEU, said in a statement: “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.
“In Makerfield, in Andy Burnham’s constituency, that means 40 schools being forced to find £866,842 collectively from their own budgets simply to meet the Government’s requirement to fund part of this pay award.”
He also referenced Sir Keir Starmer’s announcement on Tuesday of £15 billion of spending over the next four years to support the Defence Investment Plan.
“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?” Mr Kebede asked.
School leaders’ union NAHT said it is helpful that the Government will provide some additional funding to support schools.
“But we need to be clear that this is not a fully-funded award and it will mean more pressure on already stretched budgets,” general secretary Paul Whiteman continued.
“There is very little headroom in existing budgets and talk of ‘maximising value’ is deeply unhelpful.”
The Association of School and College Leaders said it will be “very challenging” for many schools to find money.
“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,” general secretary Pepe Di’Iasio said.
The unions welcomed the pay awards being above UK inflation – recorded at 2.8% in May.
Education Secretary Bridget Philipson 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.”
