UHY Hacker Young | Chartered Accountants

Budgeting for Teacher Pay Grant and Pension Grant funding

10 June 2019

Academies have known for some time that grant funding would be available to cover the cost of rising teacher salaries and the increase in Teachers’ Pension Scheme employer contribution rates.

When the announcements were made last year, the DfE spoke about funding being available until Financial Year 2019-20. The DfE financial year, and also that of the thousands of LA maintained schools, is 31 March and this suggested that academies would only be funded until March 2020.

The DfE confirmed the allocations and methodology late in April, and this has helpfully clarified that funding will continue through to August 2020 for academies.

You can check the allocation rates for the Teacher Pay Grant here.

Similarly, the pension grant funding available to cover the cost of the rise in TPS contribution rates from 1 September 2019 will run through to August 2020 for academies. The approach and methodology for the pension grant allocations can be found here, and although the document only covers allocations to March 2020 it does confirm that the approach set out in the guide will also be used to make payments for academies in the 5 months from April to August 2020.

Academies should, therefore, be taking this funding into account when completing their Budget Forecast Returns over the next few weeks ahead of the July deadline.

If you have any queries about grant funding for your trust, please contact me or your nearest academy specialist.