Academies – new funding for teachers’ pay

14th November 2018

Teachers’ pay is rising above the previously imposed 1% pay cap and the Department for Education has released details of how the money will be shared out.

In July 2018, the Government announced that teachers would get a pay rise of up to 3.5% this year, after the 1% cap on pay rises was lifted.

The rise applies to the main pay range as well as the unqualified teacher pay range, with a 2% rise applying to the upper pay band for teachers and a 1.5% rise for school leaders.


The Department has published a methodology on how the £508m Teachers’ Pay Grant will be allocated on a per-pupil basis in order to help schools with their budgeting process for years 2018/19 and 2019/20.

For year 2018/19, the available £187m of funding covers the seven months from 1 September 2018 (when the grant award came into effect) to March 2019, whilst a further £321m is allocated to year 2019/20.

The methodology assumes that all mainstream schools have at least 100 pupils and that all high needs institutions have at least 40 places.

For schools with fewer than 100 pupils/40 places, they will be allocated funding as if they had 100 pupils/40 places respectively.

The pupil rates can be found here.

Academies funding

Academies will receive their funding directly from the Education and Skills Funding Agency (ESFA).

Maintained schools’ funding will instead be paid to local authorities, who will need to pass on the money directly to the schools at the published rates.

Teachers’ pay grant

Detailed guidance and allocations of the Teachers’ pay grant for September 2018 to March 2019 was published in October, and a conditions of grant document explains the terms and conditions that schools must follow in the use of this grant.


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