Teachers Pension Funding

17th April 2019

The ESFA have recently released their guidance on new teachers pension funding (available here). There will be £848 million of funding in total to meet the additional costs. This is the estimated cost to schools due to the increase in employers pension contribution from 16.4% to 23.6%. There will also be a Supplementary Fund of £22 million, which schools will be able to apply for if the grant they receive is lower than the cost increase in employers pension contribution by more than 0.05% of their overall budget for that period.

How will the grant be allocated?

The grant will be allocated based on a per pupil formula to closely match the funding to the actual costs to be incurred. For mainstream institutions, the grant is paid based on the number of pupils aged between 2 and 19. If the school has less than 100 pupils, it will receive funding based on it having 100 pupils.

For specialist institutions (e.g. pupil referral units, alternative provision etc), the grant is paid based on the number of places. If the school has less than 40 pupils, it will receive the grant based on it having 40 pupils.

How will the grant be paid?

The funding will be paid directly to the academies in the same way other core funding is received.

Rates

The ESFA have applied an Area Cost Adjustment (ACA) which takes into account the higher wages in London. There are 4 rates used; inner London, outer London, London fringe, the rest of England.

Primary School Rates

Region

Rate in 2019 to 2020 per pupil (£)

Inner London

92.20

Outer London

85.29

London Fringe

79.85

Rest of England

77.50

 

Secondary School Rates

Region

Rate in 2019 to 2020 per pupil (£)

Inner London

135.71

Outer London

125.55

London Fringe

117.53

Rest of England

114.08

 

Rates for special and alternative provisions schools and EHCPs in independent settings

Region

Rate in 2019 to 2020 per pupil (£)

Inner London

336.53

Outer London

311.33

London Fringe

291.44

Rest of England

282.89

What it means for your school?

By looking at the type of school and location, you will be able to determine the rate per pupil and therefore the total grant you are due to receive so it can be factored into your budget. This is crucial to have your budget up to date so it can be identified whether you would qualify for the Supplementary Fund.

Should you have any questions, or would like any assistance preparing your budgets for 2019/20, please contact your usual Bishop Fleming contact.

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