Senior teachers’ pay 8% lower in real terms since 2007 after pay freeze

Teacher pay levels for experienced staff will be 8% lower in real terms since 2007 after an announced pay freeze in England, new analysis from the Institute for Fiscal Studies (IFS) warns.

Education Gavin Williamson confirmed on Wednesday evening that the majority of teachers would not be receiving any additional funds in 2021/22.

However lower-paid teachers earning under £24,000 would receive an uplift of £250.

Analysis undertaken by the IFS shows that teacher salaries would be around 8% lower in real terms than 14 years ago, just before the financial crisis, and they would be around 4% to 5% lower for less experienced teachers.

The think-tank warned the Government will need to provide above-inflation pay awards from 2022 to stop recruitment and retention problems from worsening.

The report said: “In contrast, average earnings across the whole economy have risen by about 0.6% in real terms between 2007 and 2021,” the report stated.

The analysis added: “There was a slight recovery in retention rates for the most recent year of data, as one might expect given the limited number of employment opportunities during the pandemic.

“However, this only really takes retention rates back to where they were about three to four years ago and is likely to be short-lived if there is a recovery in outside employment opportunities.

“There are also signs that teachers are more likely to want to leave the profession after the pandemic.”

Luke Sibieta, research fellow at the IFS, said: “It is astounding that teacher pay levels remain so far below what they were before the financial crisis in 2007.

“The 8% drop in earnings for more experienced teachers has almost certainly contributed to the worsening picture on teacher recruitment and retention.

“The fact that it has taken a global pandemic and economic crisis to ease the pressures on the teacher labour market illustrates the scale of the challenge.

“To stop these problems getting worse, the Government will need to provide above-inflation awards from 2022 onwards.”

The analysis adds that pay levels for teachers are now “notably higher in Scotland and Wales” than they are in England.

Dr Patrick Roach, general secretary of the NASUWT teaching union, said the analysis added “further damning proof” that teachers were “worse off” because of ongoing cuts to their salaries.

He said: “The NASUWT continues to argue vociferously against any further pay freezes. This is having a damaging impact on recruitment, retention and morale, particularly in the context of the vital work teachers are doing serving on the frontline during the pandemic.”

A Government spokesperson said: “We are enormously grateful for teachers’ and leaders’ hard work during the pandemic, and last year we announced the biggest pay rise for the profession since 2005, with above-inflation rises for every teacher in the country.

“The pause to most public sector workforce pay rises ensures we can get the public finances back onto a sustainable path after unprecedented Government spending on the response to Covid-19.

“We remain committed to introducing a £30,000 starting salary for all teachers, and this year to protect the lowest earners there will be a pay award of £250 for all teachers earning less than £24,000 as recommended by the STRB (School Teachers’ Review Body).”

Additional reporting by PA