A new generation of teachers will be left more than £3,000 worse off in real terms by 2020 as a result of today’s Budget, according to research by the Liberal Democrats.

The Liberal Democrats’ analysis, which draws on figures released by the Office for Budget Responsibility today, applies to newly qualified teachers earning £22,970 a year and assumes salaries will remain capped at 1 per cent.

Inflation currently stands at 2.7 per cent and is expected to remain at around 2 per cent or more for the next few years.

Although the government has technically lifted the 1 per cent pay cap for public sector workers, it has not provided any extra money to fund bigger increases for teachers.

This means pay rises above 1 per cent would need to come from existing budgets, at a time when school finances are extremely stretched.

Announcing the Budget today, chancellor Philip Hammond pledged that he would protect health services by providing additional funding for nurses’ pay - but he did not mention teachers’ pay.

The chancellor’s decision not to provide any additional funding for teachers’ pay comes as unions are demanding a 5 per cent salary rise for 2018-19.

Liberal Democrat education spokesperson Layla Moran said: “It is outrageous that the chancellor has asked our dedicated public sector workers to accept another pay cut.”

She added: “They are working long hours and are often put under immense pressure, and this is how ministers thank them for it.”

Blow to morale

It should come as no surprise that “dedicated teachers” are leaving the profession, according to Ms Moran.

“They are being completely undervalued and morale is at rock-bottom. The Liberal Democrats will not stop fighting to lift this damaging and, frankly, insulting cap on public sector pay.”

A document released by the Treasury today on public sector pay states: “For 2018-19, Secretaries of State will be able to consider appropriate pay awards depending on workforce needs and resources.”

It adds that senior ministers will “consider the recommendations of Pay Review Bodies to inform pay awards, which need to be fair to both workers and taxpayers”.

The Department for Education has been contacted for comment.

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