Last week’s announcement that the School Teachers’ Review Body has been asked to consider a three-year teacher pay settlement might initially look daunting for school leaders already grappling with tight budgets.

But it fundamentally represents an important turning point for the profession - one that leaders will recognise and actively build upon.

Under education secretary Bridget Phillipson’s tenure, the Department for Education has proposed a multi-year plan that guarantees a 6.5 per cent teacher pay rise over the next three years. When combined with the two previous annual uplifts, this amounts to a 17 per cent increase over five years.

This is a level of sustained investment that dwarfs anything we saw under the previous government. Indeed, the across-the-board annual uplift of 3.7 per cent in 2001 was not surpassed until the 5 per cent rise in 2022.

A return to financial normality

For those of us who have spent decades in education leadership, multi-year funding settlements are not revolutionary; they are a return to necessary normality.

Multi-year funding settlements were last seen 18 years ago when the multi-year settlement for teachers’ pay was announced for 2008-2011. When I became a headteacher 21 years ago, having clear, long-term financial visibility was the expected standard.

This historic context sharply contrasts with the more recent funding environment. Subsequently, the profession endured years of meagre 1 per cent pay rises (until the 2.75 per cent uplift in 2019) and diminishing core funding. This era of diminishing support contributed significantly to at least a decade of underinvestment.

While some may look back at New Labour through rose-tinted glasses, it is crucial to remember that it took several years after 1997 for that government to gain momentum and for the school system to fully realise the impact of investment.

Crucially, this new multi-year settlement proposal confirms that the direction of travel has changed, decisively, with the government beginning to be seen as genuinely rebuilding the foundations of the profession.

Benefits for school and trust leaders

The multi-year approach provides immense benefits for those leading schools and trusts, particularly those responsible for strategic planning and budgets through to the end of the settlement period (extending budgetary certainty through the end of 2028-29).

1. Financial clarity and planning framework

What has been offered is not just a headline grabber, but something far more valuable: stability, clarity and respect. The defined commitment gives schools a framework to plan.

Leaders accustomed to navigating annual uncertainty now have firmer financial boundaries, allowing them to better integrate these rises.

This certainty is essential for long-term strategic investments and managing the difficult trade-offs required in budgeting.

2. Supporting recruitment and retention

The sustained investment is a tangible statement of intent: that teaching is a profession to be respected, rewarded and retained. Focusing resources on staff is paramount, as what matters most is our people.

Every pound spent on recruiting, retaining and rewarding great staff pays dividends for our pupils in the long run.

This approach allows leaders to restore teaching as the high-status profession our young people deserve, while enabling the DfE to continue to push the Treasury for better funding settlements for schools.

3. Measurable system stabilisation

The benefits of prioritising staff investment are already evident in workforce data. For the first time in years, recruitment and retention figures have started to stabilise.

Leaders can leverage this renewed momentum as applications to initial teacher training are up, primary entries are at their highest level since 2019 and, critically, the number of experienced teachers leaving mid-career is beginning to fall.

These improvements did not happen by accident; they reflect a willingness to back words with real resource.

An investment, not a burden

Ultimately, for leaders, this settlement should not be viewed solely as a burden on strained finances but as a critical investment.

While integrating the pay rises remains challenging, this multi-year plan provides the longer-term clarity necessary to make those difficult decisions while protecting the core mission: ensuring high-quality staff for our children and young people.

Now, though, we need to support the DfE in making the case that there is a strong link between education and economic growth and development.

Jon Chaloner is the former CEO of GLF Schools, a multi-academy trust of 43 schools

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