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Union Claims Victory as Ministers Agree to Fully Fund Pay Rise for Teachers in England

The funding will help schools cover a 3.5% pay award and may avert a strike ballot after 90% of voting teachers backed action.

  • On Wednesday, the government announced schools in England will receive around £500 million in extra funding this year to support a 3.5% teacher pay rise, aiming to avert potential industrial action by the National Education Union.
  • Previously, schools were expected to fund the 3.5% pay increase from existing budgets, which the NEU strongly objected to, citing a shortfall of around 1% identified by the Institute for Fiscal Studies.
  • Government officials stated the extra money derives from 'significant savings' in employer contributions to the local government pension scheme, which will not be clawed back by central government.
  • General Secretary of the NEU Daniel Kebede called the offer a 'significant' step, saying schools had been 'running on empty' and the funding signals 'a welcome return to reality, and a message of hope for the entire school community.'
  • The NEU national executive will meet on September 24 to consider cancelling a formal strike ballot scheduled to begin October 3, potentially averting teacher strikes early next year.
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BBC News broke the news in London, United Kingdom on Wednesday, September 16, 2026.
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