The government is set to consult on a £1.1bn increase in employer contributions to the Teachers’ Pension Scheme in early 2019, it has revealed.

Responding to a question how it expects schools to afford the increase on 27 December,
Education Minister Nick Gibb said the consultation will focus on understanding the impact on state-funded schools, which it expects to increase by a total of £830m.

Independent schools, further education colleges and other public-funded training organisations, and universities and other higher education institutions will also be affected by the increases.

The Department for Education (DFE) added that it has contacted all education trade unions and a number of employer representatives over he increase.

Gibb said: “Once the consultation has closed, the department will make an assessment on the viability of the scheme and the number of institutions participating in the scheme.

“The department estimates the total cost of increased employer contributions into the Teachers’ Pension Scheme to be £1.1bn in 2019-20. This is broken down as follows: £830m for state-funded schools, £110m for Independent schools, £80m for the further education sector, and £80m for affected universities and other higher education institutions.”

He added that consultation will focus on which sectors should receive additional funding from the government.

According to the DFE, discussions with the unions and employer representatives will continue through the Teachers’ Pension Scheme Advisory Board.

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