News

Teachers and heads hit as second annual pensions hike gets the go-ahead

School finance
The second hike in teachers' pension contributions has been ratified by the Department for Education, sparking anger among teachers and heads.

The second hike in teachers' pension contributions has been ratified by the Department for Education, sparking anger among teachers and heads.



Teachers earning less than £26,000 a year will not see an increase in contributions this year. However, others will pay increased contributions of between 0.6 and 2.4 per cent, depending on how much above £26,000 they earn. The table below breaks down the latest rises.



The changes are part of the three-year plan to increase teachers' contributions ultimately by 3.2 per cent (from 6.4 to 9.6 per cent) by 2014/15.



Unions are angry, arguing that when combined with an increase in the retirement age to 66 by 2020, the move to a career-average scheme, and the change in inflation link from RPI to CPI, increased contributions are unjustifiable.

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