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Schools given £940m to fund pension contribution increases

Extra government funding of £940 million has been set aside to cover the increased cost of contributions to the Teachers’ Pension Scheme (TPS) in 2019/20.

Confirmed yesterday (Wednesday, April 10), the announcement commits to fully funding the increases for state-funded schools and colleges until the end of the current Spending Review period in March 2020.

The Department for Education (DfE) has said that payments will then be made to academies to cover the five months from April to August 2020 and has pledged that maintained schools will receive equivalent funding when the Spending Review covering the three-year period from April 2020 is finalised later this year.

The TPS is guaranteed by the government and offers a typical teacher around £7,000 in employer contributions every year. It was confirmed last year that the contributions schools make are to rise 16.4 per cent to 23.6 per cent from September 2019. It is estimated that this will cost state schools and colleges £848 million from September 2019 to March 2020.

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