红桃影视

Skip to content

Academy trust will press on with pension change despite government ‘threats’

England's biggest MAT to go ahead with controversial plan to offer less generous pensions in return for higher salaries
3 min read
|

England鈥檚 biggest academy trust has vowed to press ahead with plans to let teachers opt into a less generous pension scheme to boost their pay, despite what it called 鈥渢hreats from government officials鈥.

reported the Department for Education had told United Learning Trust that it opposed the move 鈥 thought to be a first for state schools 鈥 to offer workers the teachers鈥 pension scheme (TPS) alternative.

But Sir Jon Coles, the academy chain鈥檚 CEO, has hit out the government, stating he remains “confident in our legal position”.

“Although we are not able to go ahead in April as planned, we do still plan to go ahead with the scheme, despite threats from government officials.鈥

Sir Jon Coles
Sir Jon Coles

The i said government informed ULT that part of its funding would not be able to be accessed unless it was being used to pay for membership of the TPS pension scheme.

It was also reported that officials told the trust it faced the threat of a financial notice to improve.

Despite stressing it does not comment on 鈥渟peculation鈥, the DfE confirmed it had requested a business case so it could be “appropriately considered in the context of teachers and the impact on public finances”.

Schools Week previously revealed ULT, which runs 90 schools, was planning to offer teachers the choice of an alternative pension scheme from 2025, alongside the TPS.

Currently, teachers have to pay between 7.4 and 11.7 per cent in contributions, with employers stumping up 28.6 per cent of the worker鈥檚 salary.

Under the plan, teachers who wanted to opt out of the TPS would be able to contribute either 0, 5 or 10 per cent of their salary in a new defined contribution scheme.

The trust would contribute at least 10 or 20 per cent. The money saved by United Learning on employer contributions would go towards bumping up pay for teachers on the alternative scheme.

Union calls to ‘close pension loopholes’

For teachers contributing nothing towards their pension and getting 10 per cent from their employer, this would equate to a 15 per cent salary uplift.

This would mean starting salaries rising across its schools outside London from 拢32,850 to almost 拢38,000, and from 拢39,000 in inner London to 拢45,000.

Unions previously slammed the 鈥渁larming鈥 proposals, adding 鈥渢ampering with statutory public sector pensions is dangerous and unwelcome鈥.

Today, NASUWT general secretary Dr Patrick Roach argued employers 鈥渁re being disingenuous in claiming that they want to boost pay if the price to be paid by teachers means sacrificing their future incomes in retirement鈥.

Dr Patrick Roach
Dr Patrick Roach

He 鈥渨ill now be seeking assurances from ministers that any such loopholes will be closed鈥.

Association of School and College Leaders general secretary Pepe Di鈥橧asio noted “teachers should not have to choose between an adequate pension and adequate pay”.

But Coles has accused unions of 鈥渘ot representing their members鈥 for opposing the scheme, citing the results of an internal survey showing 鈥渟ome 25 per cent of staff鈥 had 鈥渆xpressed interest鈥 in it.

An Education Policy Institute study last week also found one in six teachers would prioritise an immediate pay increase over a higher pension.

“Our original aim was to attract new entrants rather than appeal to existing teachers so this is remarkably high,鈥 Coles added.

“We will always offer TPS to all teachers. Teachers will be able to move freely between the two schemes annually鈥 [and] be offered free independent financial advice.鈥

Share

Explore more on these topics

1 Comment

  1. Other MATS are already doing this!

Featured jobs from FE Week jobs / Schools Week jobs

Browse more news