School teachers in England have been offered a 3.5% pay rise from September.
Education Secretary Bridget Phillipson has also recommended an additional 3% increase from September 2027, following recommendations from an independent review body.
The Department for Education (DfE) also said that £1.8 billion in additional funding would be provided to support pay rises for teachers and support staff - but that schools would have to fund the first 1% themselves from existing budgets.
It was also announced that the pay of academy trust executives would be capped at £174,000, with government approval needed before advertising roles over that salary.
In October, the DfE suggested in its evidence to the School Teachers’ Review Body (STRB) that teachers’ pay should rise by 6.5% across 2026/27, 2027/28 and 2028/29.
Unions had warned that the proposals were “extremely disappointing” and could worsen teacher shortages, calling for any pay increase to be fully funded.
In May, the National Education Union (NEU), the largest teaching union in England, said that it would hold a formal ballot for strike action over pay in the autumn if the government did not improve its initial proposal.
It said that 6.5% over three years was unlikely to match inflation, calling the proposal an "insult".
Following the latest offer, a spokesperson said: "We are considering all options."
An informal indicative ballot held already this year suggested that 90.5% of teachers who are members of the NEU would be prepared to take industrial action.
The union's general secretary Daniel Kebede said: “A partially funded settlement still means cuts to education. The NEU will never accept that.”
Education Secretary Bridget Phillipson said the offer demonstrated the "immense value we place in our teachers".
She said: “Our brilliant school and college teachers go above and beyond every day, and I’m determined that dedication is not just recognised, but rewarded.
“This multi-year deal, backed by significant additional investment, shows the immense value we place in our teachers, while giving schools and colleges certainty over pay and their budgets.
“It’s also right that classroom teachers are not seeing executive pay rise faster than their own – or set at excessive levels in the first place – so tighter controls will mean unjustifiable exec salaries become a thing of the past, helping level the playing field for school staff and drive every pound towards classrooms.”
Leora Cruddas, chief executive of the Confederation of School Trusts, said: "The government appears to have rushed into these changes without consulting with school trusts to understand their impact."
The DfE also said that an additional £485 million will be provided to colleges and further education providers over the next two years.
David Hughes, chief executive of the Association of Colleges, called it a "very positive announcement" while noting that "college pay still lags a long way behind schools and industry".
