Teachers’ pension employer contributions funding adjustment
Methodology for funding adjustment in schools and other education providers to account for the fall in teachers’ pension employer contributions from 1 April 2027.
Applies to England
Documents
Details
From April 2027, employer contribution rates for the Teachers’ Pension Scheme (TPS) will decrease from 28.6% to 17.6%.
Funding for schools and other eligible education settings will be reduced from 1 April 2027 to reflect the decrease in pension costs.
This guide explains how the deduction will be applied to different settings.
Methodology
This document sets out how the funding reduction will be applied to:
- mainstream schools (reception to key stage 4 provision)
- special and alternative provision schools, and other providers of hospital education
- early years providers
- local authorities in respect of their centrally employed teachers
Funding adjustment calculator for mainstream academies
The calculator will help mainstream academies to estimate the deduction to their general annual grant (GAG) allocations from April to August 2027 before the deductions are published.
Information regarding how this change will affect post-16 grants is available in: