Govt launches consultation on teachers’ pension increase

The government has launched its consultation on a £1.1bn increase in employer contributions to the Teachers’ Pension Scheme in 2019/20.

The increases are expected to be implemented from 1 September 2019 and comprise £830m for state-funded schools, £110m for independent schools and £80m each for further education and higher education colleges.

Its consultation proposed funding towards the £830m pension increase for state school teachers, including in academies, nurseries and special schools.

The Department for Education consultation stated: “The department recognises the significance of this pension pressure and intends to protect schools from it by fully funding the increase in employer contribution rate in 2019-20.

“Centrally employed teachers are not directly employed by schools. However, we recognise the work they do to support pupils in schools.

“Given this, and the significance of the pension pressure, we intend to provide funding for centrally employed teachers.”

It also proposed providing £80m to cover the costs of increased employer contributions to further education colleges, including sixth form colleges and community learning providers.

The document confirms the schools’ contribution will rise to 23.6 per cent, a rise of 43 per cent from the current rate, which is 16.48 per cent.

The consultation, announced on 3 January 2019, closes on 12 February 2019.

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