Shifting sands

The news that the public sector pay cap is effectively dead in the water should come as helpful news for schools facing recruitment issues. I have already suggested that the use of recruitment and retention allowances could be a way around the present pay cap as it was in previous times of recruitment difficulty. Such measures are often unfair on teachers already at the school, but they also recognise the additional costs of taking up a first job or a new position in a different area.

Of course, the cost of these measures, as I suspect with the relaxing of the pay cap, will no doubt have to come from existing school budgets. I don’t see the government offering large amounts of additional funds to schools when the pupil population is on the rise and that increase has to be paid for regardless of whatever else happens. This may mean larger classes; fewer small optional subjects and the continued encouragement of older and more expensive teachers to consider early retirement so that they can be replaced by younger cheaper teachers that no longer need a guaranteed annual salary increase.  I don’t think the Teacher Supply modelling process has taken this last factor into account and it may be partly why demand has outstripped supply in some subjects.

This blog was one of the first to catch on to the penal management fee the government has inflicted on those with student loans from this month. So, it is also good news that over the weekend there has been suggestions that the government will look again at the 3.1% rate. I hope that they will bring it into line with management fees on other financial products. Even so, many families might still find extending the mortgage on the family home a cheaper option that taking out a student loan.

Reintroducing maintenance grants for those from low income families attending university is also a sensible suggestion. Far more sensible that Labour’s idea of abolishing fees and paying for the university education of those young people whose families have been happy to pay for their education up to that point in time. I know the issue that post eighteen they are adults, but as the recent NUS Report on FE launched by Vince Cable showed, there are more deserving areas of limited government funding than paying for those that have not needed or wanted to use the State for education up to the point of entry into higher education.

The other area the government needs to reconsider is the funding of trainee teachers. The lack of any coherent policy between Teach First, School Direct and SCITTs and university courses is damaging to recruitment. A common policy of fees paid by the government and a training bursary for all graduates is both clear and coherent and worked well after 2002 when it became government policy. It has no more deadweight funding attached to it than any other government employment area where new entrants are paid a proper salary during their training period. The Treasury should be reminded of that fact. It is just that the numbers are so large.  However, cutting wastage through better retention of new teachers means that the scheme could even be self-financing if trainee numbers could be significantly reduced over time.

Advertisements

Public service and public pay

As schools across the country return for the start of their new school year, and all that is associated with that annual event: the end of summer and often the return of good weather; increased traffic congestion on the roads and the ending of the seemingly endless adverts for school uniforms, the issue of pay is dominating the headlines once again.

Earlier today I was on BBC radio Kent in a discussion with the County NUT branch secretary (or should that now be The EU Secretary for the Education Union?) about why the county has so many vacant headship positions. Salary came up as one possible reason. In days of yore, whether Arthur Jarman was a senior officer for the NUT, he always used to remind me that the NUT had more head teacher members than any other association. I don’t know whether that is still the case as a result of many teachers retaining membership of both the teacher association that they joined on entering the profession and also joining one of the associations for school leaders when they reached their first leadership post.

During our discussion on-air we disagreed about how well paid primary head teachers are today. I don’t think many of the heads, especially heads of smaller primary schools, are well paid for what is required of them. Those that have to teach and well as lead the school have two very distinct jobs for which they are often not well rewarded.

We did agree on the question of the pay of some CEOs of MATs, something I have commented on before on this blog. We didn’t have time to discuss whether the one per cent pay cap may finally be on the way out. It will be interesting to see what the Secretary of State will say in the remit letter to the STRB in relation to their consideration of a pay award for 2018? The past two STRB Reports have been expressing issues with the continued effect of the pay cap but have remained faithful to their remit.

At the school level, I am surprised that more use hasn’t been made of recruitment and retention payments that were popular in London during earlier recruitment crises. Golden hellos were also used in the past, along with relocation funding for those moving into an area and requiring to set up a new home.

These days, we can no longer track just the 151 local authority recruitment offers, but must also look at what MATs are offering. Do Regional School Commissioners have a role in making sure potential staff know what is on offer? TeachVac is happy to provide a space for this on its website and has started by identifying Suffolk’s recruitment link on TeachVac’s new blog (www.teachvac.wordpress.com).  Why Suffolk, just because they asked me last year to come and talk about recruitment challenges to their head teacher conference.

In the short-term, offering to pay the fees of all graduate trainees and paying a training bursary to all might aid recruitment even if the Treasury cavilled about the deadweight cost of such a move.

 

2% for all main scale teachers

Yesterday, the School Teachers Pay Review Body published its report and recommendations to the government. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/626156/59497_School_Teachers_Review_Accessible.pdf as expected, the STRB felt bound by the remit letter it had received from government. As a result, its conclusions didn’t breech the government’s stated policy of a one per cent cap on public sector pay: no real surprise there. However, the STRB’s recommendations did contain one suggestion for higher pay to the maximum and minimum of the main pay range.

STRB’s 2017 Recommendations

For September 2017, we recommend:

  • A 2% uplift to the minimum and maximum of the main pay range (MPR);
  • A 1% uplift to the minima and maxima of the upper pay range (UPR), the unqualified teacher pay range and the leading practitioner pay range;
  • A 1% uplift to the minima and maxima of the leadership group pay range and all head teacher group pay ranges; and,
  • A 1% uplift to the minima and maxima of the Teaching and Learning Responsibility (TLR) and Special Educational Needs (SEN) allowance ranges.

If accepted, these recommendations will lead to some teachers receiving a higher pay rise than others, notably those on the top of the main scale, but not having progressed through to the higher pay scales. Now since many, if not most academies don’t have to stick to the national pay scales, this provides an interesting opportunity for the teacher associations to flex their muscle and demand a 2% rise on the main scale for all teachers not covered by the mandatory national pay scales. If achieved, it would put pressure on the government either to offer the same deal to other teachers across the sector or risk teacher recruitment and retention issues becoming worse outside the academy sector.

The data in the STRB Report suggests that most schools can carry an extra one per cent on their main scale teacher’s pay bill by dipping into reserves. Yes, a hoped for building project might be delayed by a year, but many teachers would feel that their financial situation is being taken seriously.

Is it in the interests of the teacher associations to take this line or to hold out for more for everyone at some point in the future? That’s their judgement call, but I think the two per cent for all main scale teachers demonstrates that they do more on the pay front than just argue the case with the STRB and are indeed prepared to take on a weak government playing a poor hand on public sector pay.

To compensate, I would argue for bringing MAT chief officers pay within the overall cap. It is surely wrong to cap the pay of workers but let the bosses set their own take from public money, albeit sanctioned by their boards.

There is plenty of evidence within the STRB report of recruitment problems, but having waited so long to publish the STRB might have updated some charts with the evidence from the 2016 School Workforce Census rather than relying on 2015 that charted the recruitment round for September two years ago.

Confusion over future pay

The confusion over the future of the public sector 1% pay cap that apparently highlighted differences between the Treasury and other ministers yesterday is but one symptom of the malaise at the heart of the present government. We are used to hearing of –U- turns, but what do we call a double reversal of intent since the term spin has already been appropriated in the political landscape?

Nevertheless, it is clear that pay and associated conditions of service for teachers cannot for ever avoid the effects of competition in a labour market while we live in a society where the State doesn’t direct the job you have to take.

While the labour market remains buoyant, and especially the graduate labour market, it does seem inevitable that any ceiling on pay will have adverse effects. Later today, the June data on recruitment to teacher preparation courses starting this autumn will be published and that will be another straw in the wind. Regular readers will know that I don’t expect the data to be very encouraging in terms of meeting the government’s modelling over numbers needed to be recruited.

Eventually, the pay cap in education will have to go. The government can fudge the change by making changes to the overall structure through, for instance, initiatives such as loan forgiveness schemes that reduce a new entrant’s monthly outgoings by taking over their student debt. However, that won’t help older teachers and encouraging experienced teachers to remain in the profession may be as important as attracting new entrants, if you want a balanced age profile in the profession reflecting both experience and new ideas.

Then there is the question of regional pay. Should London pay rates go up faster than those elsewhere in the country because the London area is where the problem of recruitment is most severe? The data in a previous post about percentages of unqualified teachers might support this thesis, but it could also be down to academies in London looking for a different mix of skills not adequately provided by the subjects identified in the Teacher Supply Model? Should we pay more to secondary school teachers than those that work in primary schools? Traditionally that hasn’t been the case and there seems little evidence that freeing academies form national pay rates has altered the pay landscape very much, except in one specific area.

Senior staff pay in schools, as much as elsewhere in society, doesn’t seem to have been subject to the same degree of pay restraint as classroom teachers have experienced over the past decade. I don’t buy the view that adding one or two schools to a Multi Academy Trust requires the Chief Executive to receive a pay rise to compensate for extra responsibilities.

Since academies are national schools, the government should look at whether chief officer pay in MATs is governed by any specific restrictions and whether there is at least a moral obligation to follow the government’s line on pay restraint while it is still in force.

Perhaps a learned body or a university research team could produce some pay guidelines for chief officers of MATs that relate their pay and conditions to those of chief officers in local authority Children’s Services? They might even be included in the Top Salaries Review Body since these staff in MATs are paid from government funds.

 

 

26th STRB Report published

The School Teachers’ Pay Review Report, sent to the government at the end of April, was finally published today. I posted a blog on the 24th May wondering about its non-appearance. My speculation was that it might contain some facts and conclusions on teacher supply, recruitment and retention that would make uncomfortable reading for Minister. In one sense this has proved to be the case.

Although the STRB finally conclude:

Taking all these factors into account, and balancing risks to recruitment and retention against the importance of giving schools time to plan for managing a higher uplift, we judge there would be significant risks associated with a recommendation this year for an uplift of more than 1% to the national pay framework.

However the next paragraph provides something of a warning to Ministers by commenting:

However, if current recruitment and retention trends continue, we expect an uplift to the pay framework significantly higher than 1% will be required in the course of this Parliament to ensure an adequate supply of good teachers for schools in England and Wales. Accordingly, we recommend the Department, and our consultees take steps to help schools prepare for such an eventuality

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/535042/55621_School_Teachers_Accessible.pdf

It is difficult to make a clearer statement than that about what’s happening to teachers’ pay. The Report is mostly silent on the issue of conditions of service. Whether government will listen is another matter.

The Report was, of course, prepared before the Referendum vote and the economic shocks that are beginning to affect the markets. In that respect, I am reminded of the consequences of the oil price shock in 1972 and what it did for the British economy. In those days the London Stock Exchange had but one index of share price movement, the FT 30 Index, made up of 30 leading shares. It used a geometric rather than arithmetic mean as the basis of its calculations, thus in some cases understating the magnitude of any change. Even so, the market collapsed from a high in 1972 of 543.6 to a low on January 6th 1975, when most traders returned after the holiday break, of just 146. This was a slide in under three years of some 80% in real terms after inflation. It also followed the two general elections of 1974

Hopefully, the departure from Europe won’t create such a fall in the value of shares and the knock-on effects on the rest of the economy, but if it does, then who knows what will happen to teacher supply? The pound dollar rate has already fallen from the 1.40s:1 rate before the referendum to under 1.30:1 as I write and there is an emerging consensus it will end 2016 at around 1.16:1 or $1.16 per £1. http://www.bbc.co.uk/news/business-36721278 There are even some pessimists predicting the £ will fall below parity with the dollar.

All of this is a way of saying that the STRB Report, although interesting, could be consigned to the dustbin of history. Economic downturns have a history of attracting recruits into teaching and persuading those already there to stay. Will that happen; who knows. An alternative scenario is that with a relatively young profession, many abandon teaching here and head for jobs overseas where their skills might be better rewarded and they can save for a return sometime in the future. I guess we will all have to watch and wait, that is except for those that take action and do something.

26th STRB Report awaited

You would think that the School Teachers Review Body (STRB) had a relatively easy task this year; set a 1% pay rise and go home. After all, the Chancellor of the Exchequer, he of the ‘all schools will become an academy’ budget, has set 1% as the upper limit on public sector pay deals all the way through to the end of this parliament.

The Secretary of State issued her remit letter to the STRB on the 7th October 2015 with a request in the final paragraph that,’ I should be grateful if the STRB could aim to provide a report on this matter before the end of April 2016. I look forward to receiving your recommendations on the 2016 pay award.’

Clearly that aim was met. I apologise to the STRB for previously suggesting otherwise. According to  an email that their secretariat has sent me,  the 26th Report was sent to government on the 28th April.

The Office of Manpower Economics that services other government pay and conditions bodies produced the armed forces, NHS, doctors and dentists and senior civil servants reviews before the end of April and they were also published by government. It is true that it was only on the 12th May that the National Crime Agency Report appeared. That now leaves the STRB somewhat out on a limb, with a report submitted to government, but not seemingly published yet.

For academies, apart from the absence of useful national guidelines, the absence of an updated national pay and conditions document for September may be little more than an inconvenience as they can set their own terms and conditions and pay levels. For community and voluntary schools in England and almost all schools in Wales, the STRB report sets in chain a sequence of events that lead to the publication of the Pay & Conditions document.

Although former requirements, such as an annual increment, have been abolished, pay rates normally change from September and historically that meant advising on pay for the forthcoming years before schools set their budgets. That hasn’t been possible this year for schools funded via the local authority route with an April to March financial year, although it is still possible for academies where there is a budget cycle that matches the school-year. Nevertheless, even here, time is running out if the STRB were to produce anything innovative in their Report, such as addressing the recruitment and retention crisis in London by upping the pay rates by more than 1% and compensating elsewhere.

Hopefully, the report will appear before there is any chance of it being caught by the purdah rules ahead of the referendum next month, but time seems to be running out. It would be good to at least have an expected date so we can know what the STRB’s view is on the current state of recruitment and the suggested solutions to the problem that they have devised.

 

Autumn Statement

Two things struck me about the small print of yesterday’s announcement, apart that is from the procurement savings that should favour TeachVac if anyone takes any notice of the requirement to reduce costs.

The first was the final point in the education section:

2.67 The department will deliver 20% core administrative savings through greater efficiency.

I assume this means fewer Ofsted visits. Whatever happened to the aim of visiting every trainee in their last term of a preparation course and the first term of their employment? That seemed like an interesting idea, but very expensive. The second area that might be threatened is the expansion of the Regional School Commissioner idea. The present small band have huge areas to cover and need more staff to really understand their bailiwick.

Even with the cuts in the Education Support Grant, it seems to me that local authorities might still have a part to play in ensuring education performance across all types of schools, including the free schools/academies sector. After all, local authorities and local councillors have a genuine interest in their local schools and are often close to what is happening in them. I doubt most Commissioners would be as aware as fast about what is happening in every primary school in their region as the host of local councillors of all political parties. Why not stop complaining about them and harvest their enthusiasm and support.

The second piece of information buried in the small print at the end of the Treasury document (page 136 for anyone that cares) is the assumed change in wages and salaries each year between 2015 and 2020. Now no doubt some of the change will be accounted for by growth in the labour market overall, but presumably a large part will be increases in wages for existing employees. Some will be the result of salary drift to offset the Living Wage increase as those higher up the wage ladder seek to retain their differentials with those below them. No doubt this is why the Treasury sees wage growth above 4% every year to 2020, peaking at 4.5% in 2016 and 2017.

Those levels of increases mean that thanks to the power of compound interest someone on £25,000 in 2015 might be earning over £30,500 by 2020. That’s fine if public sector wage rates keep pace, but if they are held down, a teacher on £25,000 in 2015 would only be earning around £26,300 by 2020. This would be more than £4,000 adrift over the wage settlements decided during this parliament.

What such an outcome might do to recruitment into teaching of those concerned about pay, I leave for others to decide. All this comes after the recent OECD review of the pay of teachers in different countries that revealed where teachers in England were placed on the global scale of teacher remuneration.

If teachers’ pay falls too far behind that of other graduates of a similar quality there will eventually need to be a catching up exercise, but probably not until after the next general election, unless the economy does remarkably well during the next few years.