The Department for Education (DfE) has recently published updated guidance on managing teacher and leadership pay. This is essential reading for headteachers navigating the complexities of school staffing, budgets, and pay policies.
Access the full DfE guidance here:
Managing Teachers’ and Leaders’ Pay – July 2024
This blog outlines the key updates and actions school leaders should take to ensure fair, transparent, and effective pay management.
Performance-Related Pay (PRP) – A Significant Change
One of the most notable updates is the removal of mandatory performance-related pay (PRP). Schools are no longer required to link teacher appraisals directly to salary increases. However, the guidance allows schools to retain PRP if they believe it benefits their staff and school culture.
This change gives school leaders greater flexibility in structuring pay policies while reducing administrative burdens. Schools now have the autonomy to create pay systems that align with their values, budgets, and staff development goals.
Key Actions for School Leaders
1. Review and Update Your Pay Policy
Gather your senior leadership team and governors to assess your existing pay structure. Consider:
- Will you retain PRP? If so, how can you streamline the process to reduce unnecessary workload?
- How will you define "good performance"? Will you use a points system, descriptors, or other evaluation methods?
- How will you handle pay decisions for staff on long-term leave or those undergoing capability procedures?
Your pay policy should align with your school’s priorities while ensuring fairness and clarity for all staff.
2. Ensure Clear Communication
Any changes to pay structures must be communicated transparently and effectively. Staff should understand:
- How pay decisions are made
- What criteria are used for salary progression
- Any changes affecting their future earnings
Consider holding staff briefings, Q&A sessions, or written summaries to ensure all staff members feel informed and valued.
3. Prioritise Fairness and Equality
The guidance stresses the importance of avoiding discriminatory practices. Schools should:
- Review pay policies to ensure compliance with the Equality Act 2010
- Conduct equal pay audits to check for gender, age, or other biases
- Be mindful of how flexible working and part-time roles impact pay progression
Pay decisions should be equitable and transparent, preventing potential disputes and fostering staff confidence.
Beyond PRP: Other Key Updates
Upper Pay Range (UPR) Adjustments
The process for applying to the Upper Pay Range (UPR) remains largely unchanged, but new guidance provides:
- Greater clarity on evidence requirements for teachers applying for UPR
- Standardised assessment procedures to ensure fairness across schools
Recruitment and Retention Flexibility
To address staffing challenges, schools now have greater flexibility in setting starting salaries and offering:
- Additional payments or recruitment incentives
- Retention bonuses for experienced teachers in hard-to-fill positions
This flexibility allows schools to compete more effectively in attracting high-quality teachers.
Headteacher Pay Reform
A three-stage process for determining headteacher pay is introduced, offering:
- More structured benchmarking for salary setting
- Consideration of school context, challenges, and growth needs
- Greater autonomy for governing bodies in salary progression
This change ensures fair and competitive pay while recognising the diverse demands on school leaders.
What School Leaders Should Do Next
✔ Review and update your school’s pay policy in consultation with leadership teams and governors.
✔ Communicate policy changes clearly with staff to avoid confusion and concerns.
✔ Monitor the impact of the revised pay system and make adjustments as needed.
✔ Stay compliant with equality legislation to ensure pay structures remain fair and legally sound.
Additional Support for School Leaders
For further guidance and practical tools, explore these resources from The HeadteacherChat Community:
- Model Pay Policy Template
- Checklist for Managing Teacher and Leadership Pay
- Equality Act Compliance Guide for Schools
- Workload Reduction Strategies for School Leaders
- Masterclass on Effective Budgeting for School Staff Pay
For more insights and to join discussions with fellow school leaders, visit:
The HeadteacherChat Community
Final Thoughts
While the new DfE pay guidance is not mandatory, it provides a framework for creating fairer and more transparent pay structures. Schools now have greater control over their policies, allowing them to tailor pay systems to their unique needs.
By reviewing existing policies, ensuring transparency, and maintaining fairness, school leaders can create a positive and equitable pay structure that supports staff morale and school success.
Updated 11/03/25