Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Teacher pay has significantly declined in real terms, impacting recruitment and retention competitiveness.
Conclusion
The Department regards pay as its strongest lever in recruiting and retaining teachers. For example, following the most recent 5.5% pay award, the Department reduced its teacher trainee targets as it expected 2,500 more teachers to stay. However, teacher pay has lagged behind others – in 2024, those working in the education sector were paid around 10% less in real terms than in 2010, with the wider public sector being paid on average 2.6% less than in 2010.58 Written evidence from the National Foundation for Educational Research stated that the Department’s 2.8% pay increase for 2025–26 is lower than the Office for Budget Responsibility’s 3.7% forecast for earnings growth in 2025–26.59 Subsequently, the government announced schoolteachers will receive a 4% pay increase for 2025–26.60 The Department recognises college teachers continue to receive less than those in secondary, who earn, on average, around £10,000 more.61 Also, the Department’s own analysis suggests IT professionals in industry, for example, earn £11,000 more than an equivalent further education teacher.62 Written evidence from the National Association of Head teachers, Royal Society of Biology and the National Education Union all stressed the need for the competitiveness of teacher pay to be improved to attract and retain enough teachers.63
Government Response
Not Addressed
HM Government
Not Addressed
6.3 Evidence suggests that pay can be an effective lever at scale; for example, the National Foundation for Educational Research (NFER) estimates that a 1% improvement in competitiveness of school teacher pay increases recruitment by 2% and retention by 1.5%. Meanwhile evidence is growing on the effectiveness and value for money of specific targeted financial measures, like bursaries and retention payments, and for non-financial interventions.