Pay and Pensions Pay: First The Age Of Austerity, Now The Age Of Uncertainty Coalition Pay Decisions So Far – The Pay Freeze 2 year pay freeze in public sector on Salaries over £21,000 from either 2010 or 2011 depending on scheme Further freeze at 1% for two years after that For teachers, began September 2011 Pension contribution increases of more than 3% of salary Coalition Pay Impact On Teachers So Far 2.3% Pay rise September 2010 – inflation 4.6% 0% pay rise September 2011 – inflation 5.6% 1.2% extra pension contributions in April 2012 0% pay rise September 2012 – inflation 2.6% Net result: 11.7% fall in real income while at work Pay Impact Still To Come 1.0% Pay Rise September 2013 – inflation 2.2% 1.2% Pension Contribution increase 2013 1.0% Pay Rise September 2014 – inflation 2.0% 0.6% Pension Contribution increase 2014 Further real pay loss = 4% Total real pay loss Sept 2009 to Sept 2014 = 15.7% 1% If You’re Lucky! “The statutory minima and maxima for classroom teachers’ pay will be uprated by 1% in each year 2013-14 and 2014-15. Schools are free to determine the extent of pay uplifts to teachers within the statutory minima and maxima, and will be able to provide an uplift of 1%, in line with any overall uplift in pay in the public sector, if they so choose.” Michael Gove – December 2012 Public Sector Pay Levels Seem To Have Risen Because Lower Paid Workers Have Transferred To The Private Sector Public Sector Graduates Lag Behind Private Sector, 2012 “By looking at the difference in average earnings between the sectors by qualification, for all individuals with a qualification up to higher education level, those in the public sector earn on average more than those in the private sector. However, for those with the highest level of education, a degree or equivalent, employees in the public sector earn, on average, 4.1 per cent less than employees in the private sector.” Office For National Statistics March 2012 Private Sector Pay Now Growing Faster • “private sector earnings are rising by around 2.1 to 2.3 per cent while public sector earnings are rising by around 1.5 per cent • “private sector pay has strengthened in recent months • “Public sector earnings growth of around 1.5 per cent is coming from a variety of modest pay rises for different groups. Some pay growth is from the rises of £250 for those earning below £21,000 eg in the NHS. Some pay growth is from the first settlements under the 1 per cent policy eg the fire service from July 2012. • “There is also a long-term effect of slimming down the public sector workforce. As support staff are removed or outsourced, the average earnings of those who remain tends to rise. This process also has the opposite effect of lowering the average in the private sector.” Incomes Data Services Oct 2012 Decollectivising Pay – Gove’s Remit For The Review Body “how the pay framework for teachers should best be made more market facing in local areas” “how the pay scales, including the main and upper pay scales, should be reformed to more effectively link pay and performance, including arrangements for progression” What Gove Got From The Review Body •Turned down on regional and local pay •More than he could have hoped for on individualising pay and removing scales Main Scale NOW Currently contains points M1 (£21,500) to M6 (£31,500) or up to £5k more in London Vast majority of teachers now move up annually IN FUTURE No more increments based on years worked Movement based only on outcome of annual appraisal Increase can be any amount however small, or none Present pay points kept “for reference only” to “indicate the pay level that might be achieved after a certain period, subject to good performance and development .” NQTs successfully completing induction would automatically move to M2 Upper Pay Scale (UPS) NOW 3 points - £34k to £36k in rest of country, up to £45k in London Achieved by applying for and crossing the Threshold when on M6 Normally 2 years satisfactory Performance Management needed to progress to each further point IN FUTURE Threshold process replaced by head teacher assessment, to determine “substantial and sustained achievement of objectives, appropriate skills and competence in all elements of the Teachers’ Standards, and “the potential and commitment to undertake professional duties which make a wider contribution (which involves working with adults) beyond their own classroom.” Same minimum and maximum payment, but no fixed number and size of points “the amount and timing of any progression should be at the school’s discretion” Teachers can apply before M6 TLRs Present system remains, but “in addition there should be provision to pay a fixed-term TLR for a time-limited project” should be between £500 and £2,500 “should not replace the use of existing TLRs for sustained responsibilities which are part of the school management structure” Recruitment and Retention Payments Time limits on using them to be removed They should be encouraged as a way of dealing with “hot spot” teacher shortages You No Longer Take Your Pay Point With You When You Move School “there should be no obligation on schools to match a teacher’s existing salary on either the main or upper pay scales” “it will not therefore be appropriate to regard a salary awarded in one school as the basis for all future postings” Posts For Classroom Teachers Above The Main Scale New post to replace AST and ET “a distinctive post for a teacher whose primary purpose is the modelling and leading improvement of teaching skills” “paying a salary higher than the maximum of the upper pay scale” Salary determined post by post with no automatic progression, but within the AST salary range Unqualified Teachers Maximum and Minimum of pay range to stay the same Schools to determine individual by individual where they go within the range No reference points No automatic pay progression Policing The Reforms “In the context of Ofsted’s responsibility for inspecting the quality of leadership and management we invite the Department to consider with Ofsted and other interested parties (such as the National Governors’ Association and NEOST) what combination of approaches would be most appropriate. In our view, this should include: 1. Reinforcing the need for all governing bodies to review the school’s existing pay policy to ensure it adequately takes account of the changes to the system of pay and progression, including clarity on links to appraisal. 2. Requiring head teachers to report annually to their governing bodies on the effectiveness of school’s arrangements for linking appraisal to pay progression 3. Developing Ofsted’s inspection framework in relation to the leadership and management of schools to provide assurance that pay flexibilities are being managed in the best interests of pupils and with budgetary probity.” Policing The Reforms Not Finished With “Reform” Yet Pensions: Bill Before Parliament The Bill provides that the normal pension age and deferred pension age of members in most schemes be the same as their state pension age, or 65, whichever is greater. This prevents scheme-specific agreements with different provisions. The Bill specifically forbids final salary schemes as an acceptable scheme type. The Bill also suggests that the Government can make retrospective changes to scheme benefits and accrued pension rights provided that it consults. The Bill requires scheme regulations to set an employer cost cap, and sets out how the cap should be set, measured and operated. Where Now On Pay & Pensions For Teachers? The Review Body Report on Pay is being consulted on now It will be implemented in September 2013 The Pensions Bill will soon become law It sets the overall rules for public sector schemes More discussions will then take place on the details of the Teachers’ Scheme Erosion of take home pay from the pay freeze and the pension contribution increases will continue until we can stop them. Triggers For Action Over Pay & Pensions For Teachers The differential impact on different teachers of the pay structure changes will challenge us as to how we use action to try to prevent their implementation The continuing national pay freeze can be linked to these changes in any action response Members continue to feel the injustice over pensions very strongly. 68 Is Too Late! When Do We Act ? We have a “live” ballot for action with a good majority The Action Short of Strike Action has built morale in many places It may be extended We need to look for partners for strike action inside and outside teaching What alliances we can build and what other campaigning steps we can take will influence our timing We need to make everything we can from our joint work with NASUWT, but not be limited by it if it seems to be holding us back.