Teachers blocked from swapping gold-plated pensions for higher salaries

Yahoo

24-03-2025

A radical plan to offer teachers higher pay for giving up their gold-plated pensions has been blocked by the Government, reports suggest.
United Learning, England's largest academy trust, wrote to teachers last summer offering pay rises of up to 15pc to leave the Teachers' Pension Scheme.
However, the Department for Education has now opposed the move, according to reports in the i newspaper.
It comes as current and former teachers launch legal action against the Teachers' Pension Scheme over severe pension valuations delays.
Teaching staff are automatically enrolled in the generous pension scheme and pay between 7.4pc and 11.7pc of their salary in contributions, with a further 28.7pc added by their employer.
Contributions are boosted by inflation each year, plus another 1.6pc for those still teaching. Upon retirement, the final pot provides retirees with inflation-linked pensions for life that already cost the taxpayer £1bn a month.
Although state schools must legally offer the scheme, teachers can opt out and United Learning planned to induce this by offering increased pay and a less generous pension from April.
Starting salaries would have jumped from £32,850 to almost £38,000 outside London and from £39,000 to £45,000 inside London.
However, teaching unions said the move was 'robbing Peter to pay Paul' and asked Bridget Phillipson, the Education Secretary, to intervene.
Civil servants have now reportedly written to United Learning – which contains nearly 100 academies – and opposed the plan. It is understood that the Government suggested that part of the trust's funding could be ring-fenced unless it was used to pay pension contributions, before warning of a financial notice to improve from the Education and Skills Funding Agency.
When approached by The Telegraph, the Department for Education declined to comment but did not deny the reports.
It comes after law firm Leigh Day and teachers union NASUWT on Monday launched a legal claim against the Government over long-running pension delays.
Pension valuations, known as Cash Equivalent Transfer Values, are usually requested in instances of divorce as a pension needs to be valued when assets are split.
Official guidelines state that they should usually be completed within three months, or six months in exceptional cases, but the process has since October been wracked with delays.
A Freedom of Information request by The Telegraph revealed that 1,053 were outstanding at the end of January. Almost 400 teachers had experienced delays of more than six months and 160 had waited over a year, while the oldest overdue case was first lodged in April 2023.
One teacher told The Telegraph she had waited more than nine months, which had affected her health and left her trapped.
According to the latest figures available, 621 are still outstanding, and the two organisations claimed the delays were causing financial losses and emotional stress
Patrick Roach, the general secretary of NASUWT, said the time for excuses was over.
He said: 'The unacceptable delays in processing CETV requests are placing intolerable financial and emotional burdens on teachers, many of whom are already dealing with significant personal challenges such as divorce or separation. Teachers who have dedicated their careers to public service deserve better than to be left in limbo.'
Ryan Bradshaw, of Leigh Day said: 'This backlog must be cleared immediately, and those affected deserve compensation for their financial losses and the stress endured. Without proper accountability and reform, this situation sets a dangerous precedent for how we value and treat our public servants.'
The Department for Education was contacted for comment.
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