Funding for the teachers' pay grant and increases in employer contributions to the teachers' pension scheme

12 March 2019

The teachers’ pay award for 2018/19 is to be funded until March 2020. The employers’ contributions to teachers’ pensions are due to increase from the current 16.48% to c23.6%, with effect from 1 September 2019. The government has committed to funding this increase for the financial year 2019/20.

As academies are beginning to think about the ESFA three-year budget forecast return, decisions will need to be made about how to budget for April to August 2020 and beyond, given that pay and pensions grant funding has only been guaranteed until the end of the 2019/20 financial year (March 2020).

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