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Teachers' Pay Costs

Volume 404: debated on Thursday 1 May 2003

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To ask the Secretary of State for Education and Skills what assessment has been made of the change in cost to maintained schools in (a) the East Riding of Yorkshire and (b) England resulting from (i) changes in pension funds, (ii) national insurance contribution increases and (iii) the shortening of the teachers' pay spine; and what financial provision will be made to compensate for shortfall. [108287]

The Department does not collect information on the distribution of teaching salaries by local education authority or school. It is therefore not possible for us to calculate the additional cost of the national insurance contribution or the shortening of the teachers' pay spine for each local education authority. It will not be possible to calculate the additional cost of the increase in employers' contributions to the Teachers' Pension Scheme for each local education authority for 2003–04 until we have analysed the contributions data for March and April 2003.In 2003–04, the national increase in funding is sufficient to cover all the pressures that authorities face. The increase in Education Formula Spending (EPS)—the base funding for schools and LEAs that forms a part of local government funding system—and School Standards Grant—additional base funding that goes directly to every school—is a 11.6 per cent. cash increase over 2002–03. This includes a baseline adjustment to the Education Formula Spending total of £586 million to cover the pre-16 costs of the 4.75 per cent. increase in employers' contribution that arises from the inclusion of pensions increase on the scheme. Further transfers have been made of £20 million, to meet the additional costs of Threshold grant payments, and £44 million to the Learning and Skills Council in respect of sixth forms.Local education authorities will need to use their increase to cover the contributions to the Teachers' Pensions scheme; teachers' pay award for 2003–04; pay rises for non-teaching staff; inflation; and the national insurance increase.