Teachers' anger at pension cost

28 July 2011 Last updated at 16:07 GMT By Sean Coughlan BBC News education correspondent Teachers staged a strike in the summer term over pensions Teachers' unions have raised the prospect of further industrial action amid angry responses to proposals for higher pension contributions.

"Members have taken strike action before to defend their pensions and will do so again," said NUT leader Christine Blower.

The proposals mean that an experienced teacher earning ?35,000 per year would contribute an extra ?341 per year.

Schools Minister Nick Gibb said the plans are "fair and sustainable".

Along with other public sector workers, teachers are being given details of proposed changes to how much money they will have to pay into their pension scheme.

For teachers in the most typical pay band - ?32,000 to ?39,999 per year - contributions will rise from 6.4% to 7.6%.

'Last straw'

But the announcement has prompted an angry response from teachers' unions, who reject the government's plans for public sector pensions.

They have argued that teachers are being forced to pay for the banking crisis and deficit.

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It is right that we ask public sector employees to pay more towards their pension to ensure they are affordable for future generations of teachers”

End Quote Nick Gibb Schools Minister "It has nothing to do with the affordability or sustainability of teachers' pensions, it is a tax on teachers to pay for the mistakes of others," said Russell Hobby, general secretary of the NAHT head teachers' union.

"The proposed increase in pension contributions is about plugging the hole in the deficit created by the banking crisis, it's not about making the pension scheme affordable in the long term," added Malcolm Trobe of the ASCL head teachers' union.

"All indications are that the teachers' scheme is already self-sufficient with contributions at the current rate."

And he warned: "This may be the last straw for the education sector."

Teachers' unions staged a one-day strike over pensions in the summer term - and last week the ATL and NUT warned of further industrial action in the autumn, if no agreement had been reached with the government.

The strike disrupted 12,000 schools in England and Wales - with teachers protesting against changes which they said would mean higher contributions, longer years of working and lower payments.

'Cynical'

In response to the details of proposed increases in contributions, the NUT general secretary, Christine Blower set out her opposition.

"Beginning a formal consultation over the political recess when there will be little chance for scrutiny will be regarded, quite rightly by teachers as a cynical move," she said.

"We cannot allow this ruthless dismantling of our public sector pensions to go ahead."

ATL general secretary Mary Bousted said: "It's clear that the proposed contribution increases are simply a way of raising money from teachers and lecturers to go to the Treasury, not towards pensions. We don't think this tax on teachers is fair."

Chris Keates, leader of the NASUWT, said it was "grossly unjust" that teachers would be paying through their penions an "additional tax for a financial crisis they did not create".

'Fairer balance'

The Department for Education has set out how pension changes would affect contributions by a range of teaching staff.

It shows that a newly-qualified teacher, earning ?21,000 per year, would pay an extra ?126 per year.

But because pension contributions are taken before income tax is deducted, the department calculates that these entry-level teachers in effect would pay ?103 more per year.

A head teacher earning ?100,000 per year, on this calculation including income tax, would pay an extra ?1,206.

Schools Minister Nick Gibb promised that "the Teachers' Pension Scheme will remain one of the very best available in the public sector".

"However, people are living longer and this makes pensions more expensive. Lord Hutton made it clear that there needs to be a fairer balance between what employees and taxpayers contribute towards public service pensions," said Mr Gibb.

"It is right that we ask public sector employees to pay more towards their pension to ensure they are affordable for future generations of teachers."

Proposed changes for teachers' pensions, 2012-2013:

Increased contribution (net of tax relief)

Source: DFE

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Heads to vote over pension strike

17 June 2011 Last updated at 17:10 GMT If head teachers vote to strike, a walk-out is likely in the autumn Head teachers in England, Wales and Northern Ireland are to be balloted on potential strike action over reductions to their pensions package.

The National Association of Head Teachers (NAHT) said it was balloting its members over the cuts with "great reluctance".

It comes after two teaching unions joined lecturers in backing a strike on on June 30.

The government said a strike would damage children's learning.

Negotiations window

NAHT general secretary Russell Hobby said: "With great reluctance, faced with threats and a refusal to negotiate from the government, we feel we have no option but to demonstrate our anger at his attack on the teaching profession.

"Like everyone else, teachers have paid the price for the recession in taxes and pay cuts. They are now also being taxed to pay for the mistakes of others.

"We fear for the future of a system with a demoralised and devalued profession. We fear that we will not be able to attract people to become heads at a time when targets and workloads are rising."

For procedural reasons even if heads back the strike NAHT members will not be joining teachers on the picket lines on June 30.

The union represents 28,000 school leaders.

Mr Hobby added: "In planning the timing of this ballot, we feel that we have created a proper window for negotiations to continue and, hopefully, prevent the need for action."

'Hardly surprising'

If NAHT members support the ballot, the union anticipates a walk-out in the autumn.

A spokesman for the Department for Education said: "The government is committed to working openly and constructively with unions to ensure that teachers continue to receive high quality pensions, and that the interests of all professionals are represented fully as pension reform is taken forward.

"Lord Hutton [who carried out a review of public sector pensions] has made it clear that there needs to be a balance between a common framework for all schemes and the need for flexibility to take account of specific workforce circumstances, such as those of the teaching workforce.

"But we are clear that a strike by teachers will only damage pupils' learning and inconvenience their busy working parents. The well-being and safety of pupils must remain paramount."

The NAHT decision comes as Treasury minister Danny Alexander confirmed the public sector retirement age would be linked to the state pension age, which is due to rise to 66, and that contributions will rise.

The government is expected later this year to give a detailed response to the review by Lord Hutton, which recommended changing public sector pensions to career average rather than final salary schemes.

However, the ATL teachers' union says that in January - before the Hutton report was published - the government wrote to it saying it intended to raise teachers' contributions from 6.4% to 9.8% of their salaries.

And the measure used to calculate how teachers' pensions increase to allow for inflation was changed in April 2011 from the Retail Price Index (RPI) to the Consumer Price Index (CPI), which is usually lower.

Christine Blower, general secretary of the National Union of Teachers - which announced ballot results earlier this week in favour of a strike - said it was clear the government had no intention of negotiating openly and seriously on pensions.

"It would appear they have already decided the changes they wish to make to public sector pensions regardless of the consequences or the facts.

"Given this position it is hardly surprising that some unions feel they have no other option than to ballot for strike action."

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Teachers ballot on pension strike

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