Increase in Teachers' Pension Contributions

The Government notified the local authority on 12.4.06 of the intention to increase the employer's contribution towards teachers' pensions as part of a package of changes to be consulted on by September 2006.

The employers' contribution will increase by 0.8% from 1 January 2007.

The local authority has been informed that the provision for this increase has been included as a cost pressure in the Minimum Funding Guarantee at a rate of 1%.

Norfolk Schools' Budgets

Money for 2006/07 has been fully delegated to schools but schools' budget shares included 2.8% inflation for teachers' pay. The actual increase was 2.5%. The additional 0.3% will cover more than will be required for the additional pension contributions from January to March 2007 (this accounting for only 0.2% for the full year). However, it is appreciated that schools may well have committed this amount.

What Schools Need to Do

Schools will need to revise their budget plans in light of the new information in order to assess its impact upon the school's planned expenditure.

The DfES has published some frequently asked questions and answers on this subject shown at: http://www.teachernet.gov.uk/management/schoolfunding/2006-07_funding_arrangements/FAQs/