Norfolk MP: Schools cutting staff to afford tax-rises and pay increases

National insurance taxes have risen to 15% for employers. While teachers are getting a four percent pay increase, in less than four months

Author: Tom ClabonPublished 27th May 2025

A Norfolk MP is warning that schools are make redundancies- due to so-called unfunded tax rises and teacher pay increases.

National insurance (NI) taxes have risen to 15% for employers. While teachers are getting a four percent pay increase, in less than four months.

"The quality of education is going to be reduced"

Jerome Mayhew represents Broadland and Fakenham:

He says a majority of these costs are having to be found by existing budgets:

"Every business is affected by NI contribution rises, but you could argue they could raise their prices or advertise for more business.

"Naturally, a school can't do that, it's inputs are fixed. So, the only lever they can pull is to cut costs. That means reducing staffing levels.

"If you reduce the number of staff available to teach our children, then the quality of education is going to be reduced, as well.

"So, there will be a very long-term cost paid for by our children, through their reduced employments prospects to the economy as a whole

He told us what the Government needs to do next:

"They need to be prepared to make some difficult decisions on welfare and some of the entrenched costs of millions of people being economic inactive and claiming benefits. The number of people who could work, but are choosing not to is a lot higher".

What has been announced in terms of pay?

The Government accepted the teachers’ pay body recommendation in full, late last week.

Schools will have to find the first 1% of the pay award through improved productivity and smarter spending.

The Department for Education says it's also providing £615 million, to help fund this pay increase.

In addition to this, the Government says it's ending tax breaks for private schools and programmes offering poor value for money, to be able to afford this.

"Recognition of the crucial role teachers play"

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.

"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".

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