Source · Select Committees · Education Committee
Recommendation 61
61
Rejected
Growing pay disparity between school and college teachers undermines retention and recruitment
Conclusion
There is a growing pay disparity between school and college teachers in England, with college staff earning significantly less—on average college teachers earn 15% less. This issue has led to staff dissatisfaction and has contributed to the recruitment and retention crisis. Whilst school-teacher pay is centrally reviewed and funded, college teacher pay decisions can be fragmented and underfunded, leading to inconsistent and often inadequate pay increases. Although recent Government funding has been welcomed, it has been described as a temporary fix rather than a structural solution to the long-standing inequity in pay. (Conclusion, Paragraph 227)
Government Response Summary
The government explicitly states it has "no plans to establish a dedicated pay review body" for further education, asserting colleges are responsible for setting pay. It highlights recent and planned investment to support colleges in addressing staffing challenges.
Government Response
Rejected
HM Government
Rejected
NOT TAKEN FORWARD We welcome the final report of the ESC and appreciate the committee’s interest in funding for pay and pay arrangements in further education (FE). It is right to highlight the ongoing challenges the sector faces in relation to teacher pay, recruitment and retention. FE colleges, rather than government, are responsible for setting and negotiating pay within colleges. However, we are committed to supporting the sector in addressing their key priorities, including staffing. That is why, in May 2025, the department announced a further £190 million investment for colleges and other 16–19 providers in addition to the £400 million of extra funding we already planned to spend on 16–19 education in financial year 2025–26. In October 2025, we announced plans to go further in financial year 2026–27. From the Spending Review settlement, we will invest nearly £800 million extra on top of the original £400 million announced in 2025/26. These significant investments will support colleges and other 16–19 providers to address priorities, including recruitment and retention, now and in the future. Targeted retention incentive payments give eligible early career teachers in priority STEM and technical shortage subjects at all FE colleges up to £6,000 after tax annually. This includes building and construction, computing and engineering and manufacturing among others. We appreciate the Committee’s interest in FE pay arrangements. There is clear value in colleges having the autonomy to set their own teacher pay as it enables them to respond directly to local labour market and skills needs. As key contributors to local economic development, colleges are well-placed to support workforce planning and delivery–particularly through alignment with Local Skills Improvement Plans. Locally responsive pay decisions strengthen their ability to meet employer needs and deliver the skills that drive regional growth. Colleges themselves are also diverse organisations delivering a range of vocational, technical, academic and functional skills provision to both young people and adults in a variety of settings. This diversity means a one-size-fits-all approach to pay may not be appropriate. In addition, there are already existing sectoral arrangements for college pay within the FE sector. While there are currently no plans to establish a dedicated pay review body for FE, we will remain in dialogue with the sector to understand their views on pay arrangements.