Forcing private schools to fund an increased employer’s contribution to the Teachers’ Pension Scheme (TPS) is “unacceptable”, a union leader has said.
Unlike state schools, independent sector employers will have to fund the full 5 per cent increase to employers’ contributions to the pension scheme.
The government has today confirmed the pension will increase from next year, taking the employer contribution rate to around 28.6 per cent. The cost for teachers working in local authority and academy schools will be paid by the government for 2024-25.
Daniel Kebede, general secretary of the NEU teaching union, said that independent school teachers are “dedicated professionals” who are “committed to and working hard on behalf of their pupils”, and who “have earned their pensions” but could now miss out.
“To face the threat of losing a decent pension is unacceptable. It should set alarm bells ringing across society,” Mr Kebede warned.
Geoff Barton, general secretary of the Association of School and College Leaders, also warned over “implications” the employer contributions could have on “more independent schools pulling out of the scheme”.
Mr Barton added that he recognises the financial burden the increase in employer contributions will have on independent schools, but urged employers to “make every effort to make savings elsewhere” to avoid withdrawing from the TPS.
Increased ‘financial pressures’ on private schools
Unlike state-funded schools, independent school teachers are not automatically enrolled in the TPS.
Julie Robinson, chief executive of the Independent Schools Council, said that “teachers are hugely valued as the most important resource for schools” but “leaders are facing numerous financial pressures” including energy price rises and cost-of-living pressures.
Around half of independent schools participate in the TPS, according to 2019 data, with independent school teachers accounting for nearly 10 per cent of the active membership.
Any school that does not offer TPS membership to eligible staff must offer an alternative pension provision.
Paul Whiteman, general secretary of the NAHT school leaders’ union, warned that the price increase could create a “two-tier pension system within the sector” and “reduce the ability of teachers and school leaders to move between the different sectors”.
He added that this could become “a critical issue at a time when the sector is suffering from a recruitment and retention crisis”.
The government will cover pension costs for mainstream 5-16 schools, high-needs settings, post-16 and further education settings and eligible early years providers.
Employer contributions are set at regular valuations. The latest contribution rates are likely to be implemented from April 2024.
Earlier this year, new data revealed that the number of teachers opting out of the TPS due to affordability has risen by more than two-thirds over the past year.
A DfE Spokesperson said: “The teacher pension scheme (TPS) forms part of a generous package along with pay and wider benefits such as job security.
“We want to ensure teachers continue to receive a good pension and that the TPS remains affordable in the long term so there is a package of measures in place to secure that, including periodic scheme valuations.”
