The government has announced funding for the teacher pay rise for schools in England, a move that the National Education Union (NEU) has described as a “significant victory” following a funding U-turn.
The Department for Education confirmed the move, clarifying that schools will no longer be expected to meet a portion of the pay award from their existing “efficiency” savings.
The new funding will be provided by allowing schools to keep savings generated by a 4.9 percentage point reduction in employer contribution rates to the Local Government Pension Scheme (LGPS).
This development is expected to avert a formal strike ballot. The NEU had been prepared to launch industrial action, with a ballot scheduled to open on 3 October 2026.
Significance for West Sussex Schools
The decision is particularly critical for schools in West Sussex, including those in Bognor Regis. The county’s schools have long been among the lowest-funded in England and have previously warned they were at a financial breaking point.
Secondary schools in West Sussex receive a unit of funding of approximately £7,125 per pupil—the fifth lowest in the country and significantly below the national average of £7,679. For schools operating on these tighter margins, the requirement to partially fund pay rises from existing budgets had caused significant concern.

The pay award includes an increase backdated to 1 September 2026. Teachers are expected to see the backdated increase reflected in their September or October payslips.
According to Schools Week, while the Department for Education maintains that the pay award itself remains the same as previously proposed, the new pension-linked funding mechanism makes the award “affordable” for individual school budgets.
The NEU confirmed that the formal electronic ballot due to open on 3 October is now unlikely to proceed following the confirmation of the funding mechanism. The union had argued that without this guarantee, the pay rise would have resulted in further cuts to support staff or educational resources.
