Schools in England get extra £500m in bid to avoid teachers' pay strike

Schools in England are set to receive an additional £500 million to support teachers’ pay this academic year, aiming to avert a potential strike ballot by the National Education Union (NEU). Schools had been expected to fund part of the 3.5 % pay rise from existing budgets, a prospect that NEU leaders had strongly objected to. Daniel Kebede, the General Secretary of the NEU, said the connection of much backing was a "significant" measurement in negotiations. In a missive to the national on Wednesday, which has been seen by the BBC, the authorities said the increase would be funded by savings from employers’ contributions to the local authority pension scheme. The missive said the 4.9 percent point reduction in what employers are expected to lend will present "significant savings" on the wage bill for staff, which will not be clawed back by central government. The NEU said it expects the extra funds to be around £500 million, which schools can now use towards teachers’ pay this year. In July ministers accepted the proposal of the independent pay review body for teachers and agreed a 3.5 % rise from September 2026 would be followed by 3 % the following year. That rise had been partially funded by an extra £700 million for 2026‑27 and £1.1 billion for the subsequent year. Independent economists at the Institute for Fiscal Studies said that left schools facing a shortfall of about 1 % between rising costs and funding this year. The extra money could potentially bring this year’s uplift into line with next year’s. Kebede said schools have been "running connected empty" and the funding signalled "a invited instrumentality to reality, and a connection of anticipation for the full schoolhouse community". In an indicative ballot by the NEU in April, 90 % of teachers who voted said they would be prepared to take industrial action over pay and funding, on a turnout of 48 %. A formal ballot was due to commence on 3 October and again on 15 December, raising the prospect of teacher‑pay strikes early in 2027. The NEU’s national executive will meet on 24 September to decide whether to call off that action following the extra funding offer from the government.