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The National Association of Headteachers (NAHT) and the Secondary Heads Association (SHA) have reached agreement wi...
The National Association of Headteachers (NAHT) and the Secondary Heads Association (SHA) have reached agreement with education secretary Estelle Morris on new funding arrangements for the teachers' performance pay scheme.

The general secretaries of NAHT and SHA are recommending to their members the new arrangements and, accordingly, the cancellation of the ballot on industrial action, which was to have been held later this month. NAHT will be balloting its members on the new arrangements as soon as possible.

The pressure of industrial action has yielded significant gains. The increased funding, and the separation of performance pay funding into two parts will:

1. Enable governing bodies to reward a very high proportion of teachers on the upper pay spine who have met the criteria for performance pay rises.

2. Encourage governing bodies to give performance pay increases to school leaders (heads, deputy heads and assistant heads) who have met their annual performance targets.


- The money for 2002/2003 will now cover at least 80% of teachers on the upper pay spine, as opposed to the 50% covered by the government's original proposal.

- The money will also fund at least 60% of the cost of moving school leaders up their performance related pay spine.

- In addition, the money can be used to push the figures of 80% and 60% considerably higher.

- We estimate that the overall cost for 2002/2003 will be of the order of£110 million against the government's original commitment of£100m.

- For 2003/2004 we will receive a minimum of£150 million, but very probably more, subject to the Comprehensive Spending Review outcomes.

David Hart, general secretary NAHT said:

'Only our clear determination to ballot for a boycott of performance management, and the very real prospect of a substantial vote in favour, has brought the government to the negotiating table. As a result we now have funding which will cover many more experienced teachers and school leaders than the number supported by the government's original proposals. This whole episode proves conclusively that the government cannot afford to have a major disagreement with those who effectively run the education system of this country.'

John Dunford, general secretary SHA said:

'We are delighted that we have reached an agreement with the government and so avoided a confrontation that nobody wanted. For a year, we have been telling the government repeatedly that its performance pay system could not be made to work. The better funded, workable system, announced today in our agreement with the government, is good news for heads, teachers, governing bodies and schools.'

Joint Statement: DfES, NAHT and SHA .

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