Teaching unions, however, have responded angrily at the Government’s refusal to fully fund the deal and warned that it would damage the quality of education that pupils received.

England’s largest teacher union, the National Education Union (NEU), said it planned to take the first step towards possible industrial action.

The independent School Teachers’ Review Body (STRB) recommended a pay award of 4 per cent for the 2025/26 academic year, building on the 5.5 per cent pay award made last year.

The Government said schools will need to play their part in getting maximum value from every pound of public money – which means schools will be expected to find the first 1 per cent of the pay award through improved productivity and smarter spending with the Government providing significant additional investment of £615 million (A$1.285 billion).

That means schools will have to find £400 million (A$836 million) of savings from their existing budgets, the NEU said.

Many schools are already making savings, the Government said, and driving costs down, including the 400 schools who took part in the department’s new energy deal which will save them 36 per cent on average.

The NEU’s general secretary, Daniel Kebede, however, told the UK Guardian in many schools the 1 per cent would result in “cuts in service provision to children and young people, job losses, and additional workloads for an already overstretched profession”.

“Unless the government commits to fully funding the pay rise then it is likely the NEU will register a dispute with the government on the issue of funding, and campaign to ensure every parent understands the impact of a cut in the money available to schools, and that every politician understands this too,” he said.

The British Government, led by Prime Minister Keir Starmer, said it has also taken what it called “tough but fair choices” to afford the above inflation pay award – ending tax breaks for private schools, as well as programs offering poor value for money and driving efficiency through boosting digital capability, so every pound is spent, it said, “on driving high and rising standards for the UK’s children”.

Education Secretary Bridget Phillipson said teachers have been overstretched and undervalued for far too long.

“… but from my first day in office, I have made it my priority to back them so that teaching is restored as the highly valued profession it should be,” she said.

“This pay award for schools backed by major investment alongside funding for further education is in recognition of the crucial role teachers play in breaking the link between background and success and will support schools and colleges to invest in the workforce they need, so every young person achieves and thrives.

“As part of our Plan for Change, we are already seeing green shoots, with two thousand more secondary school teachers training this year than last and more teachers forecasted to stay in the profession."

The pay boost, a Government statement read, “builds on the work already underway to deliver on the Government’s commitment as part of its Plan for Change to drive high and rising standards for every child, in every school”.

“This includes a stronger accountability system through reforms to Ofsted inspection, new regional improvement teams to tackle poorly performing schools, and a new, rich and broad curriculum so pupils are set up for life, work and the future.”

Around £160 million (A$335 million) will also be provided to colleges and providers for the education of students aged 16-19.

“The cash will help them to address immediate priorities, including recruiting and retaining expert teachers in subject areas such as construction and manufacturing so more young people gain the skills needed to drive economic growth and deliver the workforce which businesses and public services need,” the statement said.

The general secretary of the Association of School and College Leaders, Pepe Di’Iasio, said while he welcomed the 4 per cent increase and that the award had been announced earlier than in previous years, he was not happy by the failure to fund it.

“If the Government really thinks it will be possible to bridge this funding gap through ‘improved productivity and smarter spending’ then it is mistaken,” he told the UK Guardian.

“Schools have already spent many years cutting costs to the bone and beyond.”

Through its Plan for Change, the Government said it is determined to ensure there are more expert teachers in front of classrooms, so every child and young person has access to an excellent education.

“Hundreds of millions of pounds are also being invested to offer tax free financial incentives and professional development to attract and keep the best and brightest teachers across the country, alongside targeted action to improve teachers’ workload and wellbeing,” the statement read.

There are encouraging signs, it claimed, that “this is working” with 2000 more secondary school teachers training this year than last, a 25 per cent increase in the number of people accepting teacher training places in STEM subjects, and more teachers forecasted to stay in the profession.

Alongside this “significant investment” announced this week, the Government said it had been clear that it will support leaders to get best value from their funding, including by offering schools a suite of productivity initiatives to help them slash the costs on things like energy, banking and recruitment, “so every penny is invested on delivering opportunities for young people”.

Through its landmark Children’s Wellbeing and Schools Bill, the Government said it is also legislating so every parent can be confident of a core high quality education offer for their child – “ensuring that all children learn from a cutting-edge curriculum and are taught by an excellent qualified teacher”.