As usual, there is discussion about whether the recommendation of the School Teachers Remuneration Body (the STRB) about the level of increase for teachers’ salaries will be fully funded by the DfE this year. Of course, it depends upon what you mean by ‘fully funded’.  If the amount set aside by the DfE is less than the total pay bill, then clearly it won’t be fully funded.

However, even if it is ‘fully funded’ at the overall level, will that mean it will be fully funded for each and every individual school? Such an outcome is highly unlikely. Consider two schools; one has many young teachers and a high annual turnover of staff; the other, has a settled staff, mostly being paid at the top of their pay grade. Now also assume the first school is a maintained school with no top slicing, and the other part of a MAT that both top slices and pool reserves.

Are the two schools funded differently, assuming they are in the same local authority, with no differences in area cost adjustments or other factors. For the most part they won’t be, because of the working of the National Funding Formula that is largely based upon an amount per pupil.

There was less concern among school leaders about whether the pay bill was being met in full when pupil numbers were on the increase: it becomes much more an issue under the National Funding Formula when rolls are falling, and, as a result, a school’s income is set to reduce going forward.  

How did schools get into this position? In the 1990s when budgets were being devolved to schools from local authorities, schools could for the first time use their new freedoms to set their own staffing patterns.

Before the changes resulting from the Education Reform Act of 1988, local authorities set the staffing patterns for schools. Each school was allocated a Group, mostly from Grade 1 for the smallest of primary schools to Grade 7 for the largest secondary schools. Each grade had a point score, and that related to factors such as the number of promoted posts, and whether the school could employ a deputy head or heads. Special schools had their own grading that reflected their more complex staffing structure. The local authority picked up the staffing tab, much as some MATs do today.

All this central funding largely went out of the window with the devolution of funding to schools, although the salary of headteachers – especially in the primary sector – remained largely tied to the former group sizes for many years, often until the uncontrolled introduction of executive headteachers.

In these days of modern technology, it would be perfectly possible for the DfE to provide an uplift of the percentage recommended by the STRB that was related to each school’s salary bill. This would meet the need to ensure no school lost out from an average pay increase for all schools, but would have other consequences. I doubt the DfE would allow schools complete freedom over their staffing structure that they currently enjoy. Perhaps we might even see a return to the sort of structure that disappeared after schools’ gained control of their budgets: now there’s an interesting thought for a Labour government.