/ BUDGET 2010: NUT BRIEFING ON TEACHERS’ PAY AND THE PUBLIC SECTOR PAY FREEZE
JUNE 2010

This NUT briefing gives details of the pay announcements made by the Coalition Government in its first Budget on 22 June 2010 or immediately afterwards, including the teachers’ pay increase for 2010 and a proposed public sector pay freeze for 2011 and 2012.

The Secretary of State for Education has confirmed that the proposed school teachers’ pay increase for 2010-11 will be implemented in full. The Chancellor’s Budget speech, however, included proposals for a public sector pay freeze for 2011 and 2012 which would, if implemented, mean no increases in teachers’ pay in those years.

School Teachers’ Pay 2010-11

The Government has agreed to implement the school teachers’ pay increase from 1 September 2010 recommended by the School Teachers Review Body (STRB). This will provide a 2.3 per cent pay increase for all teachers, with higher increases for some teachers in Inner London. This 2010-11 increase is the third and final stage in the STRB’s recommended three-year pay settlement for 2008-11.

Full details of the changes to pay scales resulting from this increase are set out in Circular 09-096/SSEE (9 July 2009).

Public Sector Pay Freeze 2011-13

In his Budget speech, however, the Chancellor announced a two-year pay freeze for all public sector workers, except those earning less than £21,000 a year, for the two year period 2011-12 and 2012-13.

This would cover all qualified teachers (all pay scales are above £21,000 at the minimum) and the majority of unqualified teachers. It is assumed that the freeze will be applied to pay scales so that it would also affect all part time qualified teachers, even those earning less than £21,000 a year.

Incremental pay progression, such as movement between and on the Main and Upper Pay Scales, would not be affected.

All qualified school teachers would therefore be affected by the proposed pay freeze, receiving no pay increase in the period September 2011 to August 2013. This would mean substantial real terms pay cuts over that period.

The proposed mechanism for implementing this pay freeze is not yet clear. It is likely that the Government would simply give no pay remit to the STRB for 2011 or 2012. Alternatively, it might include in any remit a direction to recommend no increase or a statement that any recommended pay increase would be ignored.

Freezing public sector pay would reduce spending power in the economy, delaying economic recovery and risking a ‘double-dip’ recession. A pay freeze would also discourage people from entering teaching and other public service professions.

The NUT is giving urgent consideration to the Union’s response and will be discussing the matter urgently with the TUC and other public sector unions. Further information will be circulated when available.

Other Pay Negotiations for 2010-11

The pay negotiations for 2010-11 in the SixthFormCollege and Soulbury sectors are not affected by this proposed pay freeze for 2011-13. These negotiations have commenced but no formal pay offers have yet been received. Again, further information will be circulated when it is available.

Review of ‘Fair Pay’ in the Public Sector

The Government has also announced a review of ‘fair pay’ in the public sector to be conducted by economist and commentator Will Hutton. The Will Hutton Review has been asked to make recommendations on how to introduce a public sector pay multiple that would mean no public sector manager earning more than 20 times the lowest paid person in their organisation.

The proposed scope of the review does not include schools but does, however, cover further and higher education. While the current pay scales for schools permit few if any head teachers to be paid 20 times the lowest paid person, the exclusion of academies means that some academy chief executives who fall into this category would be excluded. The Union is therefore considering the case for the inclusion of the schools sector including academies.

SS&EE Department

-1-28 September 2018