---
title: DfE announces executive pay controls and teacher pay rises
description: The DfE has announced major changes for academy trusts, including new controls on executive pay, teacher pay rises for 2026 and 2027, and updates to Teachers’ Pension Scheme contributions. Trust boards and school business leaders will need to assess the impact on remuneration frameworks, budgets, governance and workforce planning. With increased scrutiny of executive salaries and evolving employment considerations, now is the time to review existing arrangements and future recruitment plans. Stone King’s leading education and employment law specialists outline what these changes mean for schools and trusts, and the practical steps organisations should be considering.
image: https://blog.isbl.org.uk/hubfs/Stone%20King%2016x9.png
---

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# DfE announces executive pay controls and teacher pay rises

![](https://blog.isbl.org.uk/hs-fs/hubfs/Stone%20King%20PuPnC6Mz_400x400.jpg?width=85&name=Stone%20King%20PuPnC6Mz_400x400.jpg)

 Stone King LLP  
July 8, 2026

<https://www.facebook.com/sharer/sharer.php?u=https://blog.isbl.org.uk/dfe-announces-executive-pay-controls-and-teacher-pay-rises&title=DfE%20announces%20executive%20pay%20controls%20and%20teacher%20pay%20rises&picture=https://20333450.fs1.hubspotusercontent-na1.net/hubfs/20333450/Stone%20King%2016x9.png&description=The%20DfE%20has%20announced%20major%20changes%20for%20academy%20trusts,%20including%20new%20controls%20on%20executive%20pay,%20teacher%20pay%20rises%20for%202026%20and%202027,%20and%20updates%20to%20Teachers’%20Pension%20Scheme%20contributions.%20Trust%20boards%20and%20school%20business%20leaders%20will%20need%20to%20assess%20the%20impact%20on%20remuneration%20frameworks,%20budgets,%20governance%20and%20workforce%20planning.%20With%20increased%20scrutiny%20of%20executive%20salaries%20and%20evolving%20employment%20considerations,%20now%20is%20the%20time%20to%20review%20existing%20arrangements%20and%20future%20recruitment%20plans.%20Stone%20King’s%20leading%20education%20and%20employment%20law%20specialists%20outline%20what%20these%20changes%20mean%20for%20schools%20and%20trusts,%20and%20the%20practical%20steps%20organisations%20should%20be%20considering.> <https://twitter.com/intent/tweet?source=https://blog.isbl.org.uk/dfe-announces-executive-pay-controls-and-teacher-pay-rises&text=DfE%20announces%20executive%20pay%20controls%20and%20teacher%20pay%20rises> <http://www.linkedin.com/shareArticle?mini=true&url=https://blog.isbl.org.uk/dfe-announces-executive-pay-controls-and-teacher-pay-rises&title=DfE%20announces%20executive%20pay%20controls%20and%20teacher%20pay%20rises&summary=The%20DfE%20has%20announced%20major%20changes%20for%20academy%20trusts,%20including%20new%20controls%20on%20executive%20pay,%20teacher%20pay%20rises%20for%202026%20and%202027,%20and%20updates%20to%20Teachers’%20Pension%20Scheme%20contributions.%20Trust%20boards%20and%20school%20business%20leaders%20will%20need%20to%20assess%20the%20impact%20on%20remuneration%20frameworks,%20budgets,%20governance%20and%20workforce%20planning.%20With%20increased%20scrutiny%20of%20executive%20salaries%20and%20evolving%20employment%20considerations,%20now%20is%20the%20time%20to%20review%20existing%20arrangements%20and%20future%20recruitment%20plans.%20Stone%20King’s%20leading%20education%20and%20employment%20law%20specialists%20outline%20what%20these%20changes%20mean%20for%20schools%20and%20trusts,%20and%20the%20practical%20steps%20organisations%20should%20be%20considering.> [mailto:?subject=I%20wanted%20you%20to%20see%20this%20site&body=Check%20out%20this%20site:%0D%0ADfE%20announces%20executive%20pay%20controls%20and%20teacher%20pay%20rises%0D%0Ahttps://blog.isbl.org.uk/dfe-announces-executive-pay-controls-and-teacher-pay-rises.](mailto:?subject=I%20wanted%20you%20to%20see%20this%20site&body=Check%20out%20this%20site:%0D%0ADfE%20announces%20executive%20pay%20controls%20and%20teacher%20pay%20rises%0D%0Ahttps://blog.isbl.org.uk/dfe-announces-executive-pay-controls-and-teacher-pay-rises.)

The Department for Education has announced significant changes affecting academy trust leadership pay, teacher remuneration and workforce planning.

From 1 September 2026, academy trusts seeking to appoint to a new executive role paying more than £174,000 will require government approval. In addition, CEO pay increases will not be permitted to outpace teacher pay awards. Further details are expected in the next Academy Trust Handbook.

The government has also accepted the School Teachers’ Review Body recommendations in full, with teacher pay increasing by 3.5% from September 2026 and 3% from September 2027. While additional government funding has been announced, schools will still need to carefully consider the budgetary and workforce implications.

Separately, employer contributions to the Teachers’ Pension Scheme will reduce from 28.6% to 17.6% from April 2027, although corresponding funding adjustments mean schools are unlikely to see a direct financial benefit.

These changes will require trusts to review executive remuneration, governance arrangements and workforce strategies. Stone King’s specialist education and employment law teams work with schools and trusts across the sector and are well placed to help organisations understand the implications and respond effectively.

Please get in touch with [Stone King](https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.stoneking.co.uk%2F&data=05%7C02%7Ctia-rose.gleeson%40ceoe.org.uk%7Cd698eb2d8bb44ad8ac1a08dedb77bf1e%7Ceb07bced103a4cb5bd30cba9703ef2a0%7C0%7C0%7C639189504564259494%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=sQw3NRCsjyquf1I015RXhpUIjf3EfyNy92lbSWtXdzI%3D&reserved=0) to find out how we can support you with these changes.

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