Department for Education launches consultation on plans to fund schools’ £830m pension contribution hike
The Government has launched a consultation this week on plans to provide extra funding to cover the estimated £830 million rise in pension contributions for state schools – although private schools will be left to foot their £110m increase.
It was announced last year that the amount schools must contribute to staff pensions is to rise from the current rate of 16.48% to 23.6% from September.
The Department for Education (DfE) has now launched its promised consultation on plans to fully fund the increase – which it estimates will cost £1.1 billion across the sector.
The pledge will cover the 2019-20 year, after which any further funding would rely on the government’s spending review.
The DfE is proposing to cover the £830 million cost to state-funded schools, which also covers non-maintained special schools, independent special schools (to the extent they educate children with education, health and care plans), local authority centrally employed teachers, and music education hubs.
The DfE has confirmed proposals its won’t cover the rise for private schools – which it estimates will total £110 million. However the consultation “recognises these costs will also place a pressure” on the sector and there is an invitation for responses to “understand the effect these changes will impose”.
Read the full article on Schools Week.