News

Concern as pensions hike wipes out £350m per-pupil funding boost

The government has delayed wholesale changes to national school funding, pledging instead a £350 million boost for the lowest funded schools. However, heads say a hike to pension contributions will leave some worse off. Pete Henshaw reports.

The hike in the pensions contributions that schools have to make will wipe out any benefit brought by the £350 million increase to the education budget, it was claimed this week.

Schools minister David Laws unveiled plans on Thursday (March 13) to give the £350 million to schools in the lowest funded local authorities across England. He claimed that four in 10 areas will gain.

However, school leaders disagreed, arguing that the extra cash will be eaten up by a 2.3 per cent increase in pension contributions, unveiled by the Treasury last week.

The Association of School and College Leaders (ASCL) said that when combined with a likely one per cent increase in teachers’ salaries this would cost schools about £340 million.

Register now, read forever

Thank you for visiting SecEd and reading some of our content for professionals in secondary education. Register now for free to get unlimited access to all content.

What's included:

  • Unlimited access to news, best practice articles and podcast

  • New content and e-bulletins delivered straight to your inbox every Monday and Thursday

Register

Already have an account? Sign in here