Teachers Pay Rise 2026: Confirmed 3.5% Award, 2027 Increase and School Funding Explained

Teachers in England will receive a 3.5% pay rise from 1 September 2026, followed by a further 3% increase from September 2027, after the government accepted the School Teachers’ Review Body’s recommendations.

The confirmed settlement replaces earlier discussions about a proposed 6.5% increase over three years. It covers teachers and school leaders in maintained schools, while academies have their own employment arrangements.

The award is supported by additional school funding, although employers must still manage some costs through existing budgets.

The National Education Union (NEU) has also paused its planned strike ballot following developments over school funding.

For teachers, school leaders and businesses supplying the education sector, the focus has shifted from whether the increase will happen to how it affects salaries, staffing and financial planning.

What Has Changed Since May 2026?

The position has changed substantially since the initial proposals were discussed.

Issue	Latest confirmed position
Teacher pay for 2026	3.5% increase from September
Teacher pay for 2027	Further 3% increase
Earlier three-year proposal	Superseded by the accepted settlement
NEU strike ballot	Paused on 24 September 2026
School funding	£700 million in 2026–27 and approximately £1.1 billion in 2027–28
STPCD 2026	Published on 16 October 2026
Backdated pay	Effective from 1 September 2026

The government has also confirmed changes to teacher allowances, pay progression arrangements and discretionary recognition payments.

How Much Is the Teachers Pay Rise in 2026 and 2027?

The Department for Education accepted the independent School Teachers’ Review Body’s recommendations on 1 July 2026.

The settlement provides two consecutive increases:

• September 2026: 3.5% across teacher and leadership pay ranges.
• September 2027: A further 3% across the revised ranges.

Compounding the two awards produces a total salary increase of approximately 6.605% for an employee receiving both uplifts.

An indicative 3% increase for 2028–29 was also recommended, but this should not be presented as another confirmed award.

The government estimates that the average teacher salary will exceed £52,800 in September 2026 and £54,400 in September 2027.

Department for Education confirmation of the 3.5% teacher pay award for September 2026 and the further 3% increase for September 2027.

What Are the New Teacher Pay Scales for September 2026?

The 2026 School Teachers’ Pay and Conditions Document confirms revised minimum and maximum salaries.

Pay point or range	England excluding London	Inner London
M1 – Starting teacher	£34,069	£41,729
M6 – Main scale maximum	£46,940	£54,131
U1 – Upper scale minimum	£49,134	£59,650
U3 – Upper scale maximum	£52,835	£64,684
Leadership group range	£53,586–£148,829	£63,709–£158,863

These are annual full-time-equivalent salaries. Individual earnings depend on working arrangements, location, responsibilities and the employer’s pay policy.

M1, M6 and U3 are commonly used advisory reference points, rather than guaranteed automatic progression points for every teacher.

The starting salary outside London rises to £35,092 in September 2027.

The lowest unqualified teacher pay point outside London received a larger 5% uplift in 2026, rather than the standard 3.5%.

Official teacher salary ranges showing the minimum and maximum pay for classroom teachers in England and London from September 2026.

Is the Teachers Pay Rise 2026 Fully Funded?

The government has allocated approximately £1.8 billion in additional funding across two financial years.

Financial year	Additional funding
2026–27	£700 million
2027–28	£1.1 billion
Combined announced amount	£1.8 billion

However, additional national funding does not mean every school’s individual payroll increase is fully reimbursed.

The Department for Education expects schools to manage approximately the first percentage point of each pay award through efficiencies and better use of existing resources.

Another important development concerns the Local Government Pension Scheme (LGPS).

Employer contribution rates are expected to fall by an average of 4.9 percentage points following scheme valuations. The DfE confirmed that these savings would remain with schools to help meet staffing costs, without reducing support staff pension benefits.

Separately, employer contributions to the Teachers’ Pension Scheme are scheduled to decrease from 28.6% to 17.6% in April 2027, excluding the administration levy. School funding will be adjusted to reflect that reduction.

Therefore, school budgets must distinguish between new funding, retained LGPS savings and Teachers’ Pension Scheme funding adjustments.

Government explanation of the additional school funding, retained LGPS savings and financial support for the teacher pay award.

When Will Teachers Receive Their Backdated Pay?

The 2026 STPCD was published on 16 October 2026, earlier than the approximately 6 November publication date previously anticipated by the Local Government Association.

The statutory instrument is scheduled to come into force on 6 November 2026, with the relevant pay provisions taking retrospective effect from 1 September.

This distinction explains why the publication date and implementation date differ.

Teachers who receive their revised salary after September should receive applicable arrears from 1 September.

The precise payroll date depends on their employer’s implementation arrangements.

What Other Changes Does the STPCD 2026 Introduce?

The revised document contains several important employment changes beyond the headline salary increase.

Teaching and learning responsibility payments: From September 2026, schools must determine existing and new TLR1 and TLR2 payments according to the proportion of responsibility undertaken.

Upper pay range progression: Decisions about progression for teachers already on the upper pay range must occur at least every two years. Schools can continue making annual decisions.

Recognition payments: Employers can introduce modest, non-consolidated awards for exceptional contributions. These must not replace normal salary progression or TLR payments.

The document also strengthens protections around leadership working time and allows greater flexibility in organising equivalent inset-day sessions.

These provisions require school employers to review their pay policies, employment documentation and administrative procedures.

Key changes introduced by the 2026 STPCD, including recognition payments, upper pay range progression and TLR arrangements.

Has the NEU Cancelled Teacher Strike Action in 2026?

The NEU paused its planned formal strike ballot on 24 September 2026.

The ballot had been scheduled to open on 3 October and continue until December.

The decision followed government confirmation that schools would retain relevant pension contribution savings rather than having those savings withdrawn to offset the pay award.

NEU general secretary Daniel Kebede stated:

A pay deal without funding was never viable.

The union nevertheless maintained that long-term school funding pressures required further government action.

The paused ballot does not mean all future industrial disputes have been permanently resolved.

Recruitment, workload, school funding and real-terms pay remain important concerns.

Is the 3.5% Teacher Pay Rise Above Inflation?

The latest Office for National Statistics release, published on 21 October 2026, recorded September inflation of:

Inflation measure	September 2026
Consumer Prices Index (CPI)	3.5%
CPI including housing costs (CPIH)	3.6%
Retail Prices Index (RPI)	3.9%

The September 2026 teacher award therefore matches the annual CPI inflation rate recorded for that month.

However, a single month’s inflation reading does not determine the purchasing-power change over an entire academic year.

Future inflation, salary progression and changes in household costs will affect the eventual outcome.

The historical position also matters.

Institute for Fiscal Studies research by education economist Luke Sibieta found that average teacher pay in 2023–24 was approximately 10% lower in real terms than in 2010–11.

The IFS projected some recovery in 2024–25, but that historical analysis should not be misrepresented as a current 2026 estimate.

Consequently, the latest awards represent nominal salary growth without automatically proving that all previous real-terms losses have been recovered.

ONS September 2026 inflation figures showing CPI at 3.5%, CPIH at 3.6% and RPI at 3.9%.

How Have Teachers Pay Rises Changed Since 2023?

Academic year	Pay award	Position
2023–24	6.5%	Confirmed following industrial disputes
2024–25	5.5%	Implemented
2025–26	4%	Implemented
2026–27	3.5%	Confirmed
2027–28	3%	Accepted multi-year award
2028–29	3% indicative	Not a final award

This history demonstrates why assessing one percentage in isolation provides an incomplete picture.

Teachers’ purchasing power depends on cumulative inflation, pay progression and changes to employment conditions.

Are School Support Staff Receiving a Pay Rise in 2026?

Teaching assistants, caretakers, cleaners and many administrative employees are covered by different arrangements.

For employees under the National Joint Council’s Green Book framework, a 3.3% increase from 1 April 2026 was agreed on 24 August 2026.

The agreement followed earlier union opposition and targeted industrial-action ballots involving UNISON and other unions.

It should therefore no longer be described merely as an outstanding offer.

The government also expects the School Support Staff Negotiating Body to be established by the end of 2026.

This body is intended to strengthen negotiations concerning support staff pay, employment conditions and career development.

Academies operating different contracts must check their own applicable arrangements.

Do Teachers in Wales, Scotland and Northern Ireland Receive the Same Increase?

Teacher pay is negotiated separately across the four nations.

Nation	Latest relevant settlement
England	3.5% from September 2026
Wales	3.5% from September 2026
Scotland	3.25% from August 2026
Northern Ireland	4% from September 2025 for 2025–26

Wales confirmed its 2026 award in October and approved a larger 5% increase for unqualified teachers.

Scottish salaries follow Scottish Negotiating Committee for Teachers arrangements.

Northern Ireland accepted its 2025–26 settlement in January 2026. That historical agreement should not be mistaken for confirmation of a new 2026–27 award.

What Does the Pay Award Mean for Academy Trusts?

Many academies already follow national teacher salary arrangements voluntarily.

The Children’s Wellbeing and Schools Act 2026 introduces powers to establish minimum teacher remuneration within academies and requires relevant trusts to have regard to national pay and conditions.

The DfE previously indicated implementation was expected by September 2027, while subsequent October reporting suggested September 2028 for statutory application.

Trusts should therefore check the implementing regulations rather than assume that every new requirement is already operational.

The legislation is designed to protect minimum pay without preventing academies from offering higher salaries.

How Will the Teachers Pay Rise Affect Small Businesses?

The settlement also has implications beyond schools.

Education suppliers: Schools facing payroll pressures may scrutinise spending on educational technology, catering, equipment and outsourced services. Suppliers offering demonstrable savings could become more competitive.

Tutoring businesses: Higher school salaries may influence the rates experienced teachers expect from private tutoring providers, particularly in competitive recruitment markets.

Nurseries: The national teacher award does not automatically apply to early-years employees. Nevertheless, nurseries recruiting qualified teachers may face pressure to adjust salaries.

Independent schools: Private institutions are generally outside the statutory maintained-school framework but compete for many of the same teaching professionals.

Supply agencies: Changes to teacher salaries and school budgets may affect agency negotiations, pricing and temporary staffing demand.

The DfE’s procurement framework also caps certain supply-agency margins, making cost transparency increasingly important for education recruiters.

How Much Could the Pay Rise Cost an Employer?

A simplified calculation demonstrates why employers must consider more than salary increases.

Assume one employee earns £40,000 before the award.

Calculation	Amount
Original annual salary	£40,000
After 3.5% increase	£41,400
After further 3% increase	£42,642
Additional annual salary by September 2027	£2,642

For the first 3.5% increase, an illustrative employer-cost calculation is:

Cost component	Additional annual cost
Gross salary increase	£1,400.00
Employer National Insurance at 15%	£210.00
Employer pension contribution at 28.68%	£401.52
Total illustrative additional cost	£2,011.52

For ten comparable employees, the annualised additional cost would be approximately £20,115 under these assumptions.

This example assumes standard employer National Insurance treatment, a fully pensionable salary increase and unchanged contribution rates.

Actual costs vary by scheme, eligibility and employer circumstances. The scheduled April 2027 Teachers’ Pension Scheme contribution change also means future budgets must be recalculated.

Employers should maintain accurate salary and payroll records, particularly where adjustments could affect HMRC payroll compliance checks.

Frequently Asked Questions

Will teachers receive back pay from September 2026?

Yes. The 2026 award applies from 1 September, although actual payment dates depend on school payroll implementation.

Does the 3.5% rise automatically apply to academies?

Not universally. Many academies follow national scales, but employers must check contractual policies and applicable statutory requirements.

Are teaching assistants included in the teacher award?

No. Many support staff receive the separate NJC 3.3% settlement, effective from April 2026.

Can teachers still go on strike in 2026?

Potentially, but the NEU paused its planned October ballot. Any future industrial action would require the appropriate legal and union processes.

When was the final STPCD 2026 published?

The document was published on 16 October 2026. The relevant statutory order is scheduled to commence on 6 November, with retrospective pay provisions.

Will every teacher receive the same cash increase?

No. Percentage increases produce different cash amounts depending on salary, allowances, working hours and the relevant pay range.