We are disappointed that a number of teachers have decided to continue the strike action scheduled for three days this week, following a ballot by the National Education Union (NEU) in December 2024. Our children and young people are, as ever, our key priority and we share the concerns of parents regarding the impact of the strike action on the education and welfare of our pupils.
The continued strike action is in response to an ongoing consultation concerning a proposed change to teaching staff pension arrangements. This is continuing to be a challenging process as we have sought to balance, in a responsible way, the financial needs of the School, the interests of our valued teaching staff and affordability for parents, amidst a time of heightened risk and uncertainty across the sector.
The School’s teachers are currently offered membership of the Teachers’ Pension Scheme (TPS). The rates of contribution to the TPS are set by Government by way of four yearly valuations of the scheme over which the School has no control.
In April last year the TPS employer contribution rate increased by over 20% (from 23.68% to 28.68% of teachers’ salaries). This followed an increase from 16.48% to 23.68% in September 2019. The increasing and uncontrollable costs associated with the scheme present a significant financial risk to the School and governors are concerned that the associated cost may not be sustainable.
This, along with the other considerable financial challenges that the School is having to absorb following the Budget last October, namely the introduction of VAT upon school fees, the loss of business rate tax relief and increases to employer NI contributions, means that the current pension arrangements are no longer sustainable.
In response to these challenges, the School initially proposed a withdrawal from the TPS but has since adjusted the proposal to offer a hybrid pension arrangement following feedback from staff. This means that the School would continue to offer the TPS to its existing teaching staff and introduce a new defined contribution pension scheme to run alongside it.
The consultation is ongoing, and no decisions have been made.
It is important to note that some 380 independent schools have withdrawn from TPS and 260 have entered “phased withdrawal” status, effectively notifying the TPS of their eventual intention to leave the scheme. As such, a total of 640 schools have taken steps to leave the TPS. These numbers do not include all of those schools that have sought to implement a “hybrid” pension model of the kind Our Lady’s Abingdon is currently proposing. Many other independent schools are considering their options and are either consulting or preparing to consult with staff.
Our priority remains to maintain the highest standards of education whilst ensuring fair compensation and benefits packages for the teachers that make that possible. We will continue to work closely with our staff and parents to ensure they are fully informed and supported as we navigate this challenging period.