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The Guardian
· collected 2026-09-16 · by Sally Weale Education correspondent
The National Education Union (NEU) has declared victory after the UK government agreed to fully fund a 3.5% pay increase for teachers in England this month and an additional 3% from September, following weeks of negotiations with the union. Initially, schools were concerned they would need to cover almost one-third of the wage increases themselves, but new funding from local government pension scheme revaluations will provide an estimated £500 million boost for schools this year. Union general secretary Daniel Kebede welcomed the move as a significant step towards fully funded teacher pay awards and hoped it would prevent potential strikes and school closures.
Written by the local model on 2026-09-16,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
In a bid to prevent potential teacher strikes, schools in England are receiving around £500 million in additional funding from the government. The National Education Union (NEU), which had threatened strike action due to concerns over how teachers' pay increases would be funded, welcomed this move as significant progress. Initially, schools were expected to fund part of the 3.5% pay increase for teachers out of their own budgets; however, NEU leaders strongly objected to this plan, arguing it was unfair to expect schools to cover a substantial portion of the wage rise from existing funds. The government has now decided to use savings from reduced contributions to the local government pension scheme to fully fund the pay raise, alleviating concerns about strike action planned for next month. This shift in policy follows weeks of negotiations between the NEU and the Department for Education led by current Secretary Lucy Powell, who replaced Bridget Phillipson during these discussions.
Written for “Teacher Pay Funding Deal England” on 2026-09-17,
grounded in this article and the 2 other(s) covering the same event.
Why this leaning score
The article's own words the score was based on. Each is quoted
verbatim and was checked against the article text before being
stored, so you can find it in the original.
Leaning score -0.50 for article 13774 (high confidence, 2 verified quotes) · logged 2026-09-16
The UK’s biggest education union is claiming a significant victory after the government bowed to pressure and agreed to fully fund a forthcoming pay increase for teachers in England in a sudden U-turn.
asserted
government → claim → turn
Members of the National Education Union (NEU) were due to vote in a ballot for strike action next month over the government’s recent pay offer which provided for a 3.5% increase from this month, with an additional 3% from next September.
asserted
which → vote → September
While the offer was a significant improvement on initial proposals from the then education secretary, Bridget Phillipson, there was concern among teachers and unions that it was not fully funded and schools would have to find almost a third of the wage increases from existing budgets.
asserted
schools → be → budgets
After weeks of negotiation over the summer with the NEU general secretary, Daniel Kebede, Phillipson’s successor, Lucy Powell, confirmed on Monday in a letter to the union that the entire pay offer would be fully funded, using funds from recent revaluations of the local government pension scheme.
asserted
offer → confirm → scheme
Kebede said it was a “significant” step and would result in an estimated additional £500m of funding for schools this year, which otherwise would have been spent on the pay rise.
asserted
which → say → rise
“Finally, we have a government that accepts the reality that any teacher pay award must be fully funded,” he said.
asserted
he → have → reality
“Plugging the £460m black hole in school budgets signals a welcome return to reality, and a message of hope for the entire school community.
asserted
Plugging → plug → community
“Schools have been running on empty for far too long.
asserted
Schools → run → ?
Leaders simply could not afford to fund the pay award as set out by the previous education secretary.
uncertain
Leaders → afford → secretary
The new administration has accepted that it is wrong to force schools to make cuts to education just to make ends meet.”
asserted
ends → accept → education
Although the NEU national executive is yet to decide on the fate of the national ballot, the government will be hoping its latest gesture will lift the threat of strike action and possible school closure across the country.
asserted
gesture → decide → country
In a snap poll before the summer break, 97% of NEU members who participated said it was “unacceptable” that their school would have to find the funds to make up the 1.1% shortfall in government funding of the pay rise, and 89% were prepared to take strike action to ensure the teacher pay award was fully funded.
asserted
award → participate → action
In her letter to Kebede, Powell said: “I understand you are concerned the funding available in 26-27 is insufficient to cover the costs of the recent pay award.
asserted
funding → say → award
“I am therefore pleased to be able to update you that recent revaluations to the local government pension scheme will see a 4.9ppt reduction in employer contribution rates and deliver significant savings on schools’ pay bill for support staff.
asserted
revaluations → update → staff
“We can confirm this reduction in costs will not be clawed back and as such, we are confident that schools will be able to cover the costs of the teacher pay award, at a national level.”
asserted
schools → confirm → level
She added: “Given the material change to the affordability position, I would ask that the NEU revisits its proposed ballot of members planned for October and moves away from strike action.”
asserted
NEU → add → action
The Department for Education has been contacted for comment.
asserted
Department → contact → comment
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