Susan Moore plans to pay teachers more and charge schools less for the same service than the agencies which have turned filling teacher gaps during the recruitment crisis into a booming pound;600-million-a year business.

Every teacher employed by the co-operative may own a share in the business and receive an annual dividend according to the number of days worked. Ms Moore also promises that schools will benefit from a yearly cash payout fixed according to how much they use the co-operative.

She formed the Supply Teachers Co-operative in Blyth, Northumberland, with here husband, Peter, and hopes to expand countrywide. She has already signed up 30 teachers in her first two weeks.

The co-operative plans to pay teachers with less than two years’ experience pound;110 a day, teachers with more than two years’ experience pound;120, and threshold supply teachers pound;130. It says a teacher working 150 days a year for the co-operative could expect to get a dividend payout of more than pound;800.

Ms Moore, 46, who quit working as a supply teacher in January, said: “We believe we can provide a more ethical alternative to commercial recruitment agencies.”

The agency will charge commission of pound;25 per teacher a day, about half the sum charged by most supply agencies. About 70 per cent of the tax-free residue of this sum will be returned in profit-sharing payouts to teachers and schools.

A school using the co-op’s services for 300 days a year could expect to receive more than pound;1,600. Of the excess cash, 5 per cent will go to children’s charities, 10 per cent will be re-invested in the co-operative, and 15 per cent go in running costs, such as staff salaries.

There will be a one-off charge of pound;250 for a member choosing to take a long-term job contract with a school. Supply agencies currently charge up to pound;4,000.

Ms Moore says that the annual bill for supply teachers would fall to pound;400m if her co-operative scheme was adopted nationwide, saving the taxpayer pound;200m a year.

The huge earnings of supply agencies came to prominence following the case of Amy Gehring, the Canadian supply teacher.

Reports said that the three directors of TimePlan - the agency which recruited Ms Gehring - were earning more than pound;500,000 a year. The company, which pays its supply teachers a minimum of pound;120 a day, had a turnover of pound;31m last year. Select Education Supply pays an average daily rate of pound;105, Teaching Personnel between pound;85 and pound;105 and Capita up to pound;127.40 a day.

See TES Jobs1