Labour's last-minute U-turn

Education Secretary Lucy Powell reversed Labour's decision not to fully fund the teachers' pay rise, providing £500m from pension savings.

“Finally, we have a government that accepts the reality that any teacher pay award must be fully funded”

3.5% pay rise details

The pay increase is 3.5% this year and 3% next year, with schools expected to cover 1.8% through existing budgets.

NEU strike threat

The National Education Union (NEU) threatened walk-outs after Christmas if the government didn't fully fund the pay rise.

Pension savings solution

A 4.9 percentage point reduction in local government pension contributions will deliver £500m to cover the pay increase.

NEU response

NEU General Secretary Daniel Kebede called the government's move a significant concession to teachers' pay demands.

“Be in no doubt that the significant ground conceded by government is a consequence of NEU members' willingness to take a stand”

Government assurance

The government confirmed schools can cover the costs of the pay award at a national level through pension savings.

Strike ballot delay

The NEU plans to discuss its response to the government's letter on September 24, delaying its strike ballot.

Union support

The NASUWT union praised the government for finally addressing teacher pay funding concerns.

“Finally the government has seen sense and started to address the issue we have been raising for months around the funding of the teachers' pay award”

Pension scheme impact

The pension scheme change reduces employer contributions by 4.9 percentage points, freeing up £500m for teacher pay.

Government's priority

The government emphasized teacher recruitment, retention, and wellbeing as top priorities for Education Secretary Lucy Powell.

“Supporting teacher recruitment, retention and wellbeing, and rebuilding the relationship with the profession are among her top priorities”

Pay rise impact

The pay rise remains unchanged at 3.5% this year despite the funding change.

NEU's stance

The NEU hopes the government's move marks a turning point in valuing education and ending classroom austerity.

“We hope today marks an important turning point, and one we as a union will aim to build from”

Funding mechanism

The £500m comes from reduced pension contributions, not new government spending.

Strike avoidance

The government aims to avoid walk-outs by fully funding the pay increase through pension savings.

Pension savings details

The pension savings are from a 4.9 percentage point reduction in employer contributions to the local government pension scheme.

Government's confidence

The government states schools can cover the costs of the pay award at a national level through the pension savings.