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Teachers’ performance related pay will become optional

In January 2024 the previous government stated, in a bid to reduce teachers' workload, that schools would no longer be required to use performance-related pay.

The Department for Education initially stated that it would facilitate a replacement for performance related pay, and communicate any changes by Spring 2024.  However, there had been no news regarding any changes prior to the election.

Changes to teachers’ pay and conditions are typically implemented via the School Teachers’ Pay and Conditions Document (STPCD) which is published each October. Whilst the STPCD has not yet been published, the new Labour government has confirmed:

‘From the 2024/25 academic year, the requirement for objectives and the appraisal process to lead to performance-related pay outcomes for teachers and leaders will be removed. The statutory requirement to make a pay decision following the completion of the appraisal process remains…

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Schools can choose whether or not to retain some or all elements of performance related pay, but a school’s pay policy should minimise the impact on workload for individual teachers, line managers, school leaders and governing boards.

In effect, from September 2024, schools can choose whether they want to retain performance related pay.  If performance-related pay is removed then teachers will move to the maximum of their pay range unless they are subject to capability procedures. Teachers will still be required to formally apply to move to the Upper Pay Range.

We recommend that all schools which are subject to the STPCD and local authorities review their pay policies, consider whether they want to remove performance-related pay and if so, amend their pay policy.

We will provide further guidance once the STPCD has been published. In the mean time if you would like any clarification, please do get in touch with Rachel Blythe, or another of our expert Education Lawyers.

Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.

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Rachel Blythe

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