Staff pay recommendation will be unaffordable for ‘many’ colleges, say AoC

College staff should be awarded a 4 per cent pay rise this year, but the Association of Colleges had admitted “many” of its members will be unable to afford it. 

Following negotiations with five trade unions representing college workers yesterday, the Association of Colleges (AoC) announced its delayed 4 per cent pay award recommendation for 2025-26, a rise from last year’s 2.5 per cent proposal.

While the pay award matches the School Teachers’ Review Body’s (STRB) 4 per cent pay recommendation for school teachers, the AoC admitted it will “barely” maintain the pay gap between college and school teachers rather than close it.

The college membership body also acknowledged that many of its members will not be able to afford its recommendation this year. While 16-19 education funding has risen this year, funding for adult education has been cut by up to 6 per cent. 

The AoC urged unions to join its “united” campaign to the government this autumn for “sustained investment” in adult education funding.

Gerry McDonald, CEO of New City College and chair of AoC’s employment policy committee, said: “We understand that many colleges will find it challenging to meet our recommendation, particularly where they have large numbers of adult learners and apprentices.

“That is why we are also making a recommendation to the government to acknowledge the barriers the sector faces in raising pay. Sustained investment, especially in adult learning, is essential if we are to meet our aspiration for an appropriately rewarded workforce.”

Unlike schools, colleges decide staff pay awards themselves. The AoC’s annual pay proposal is non-binding, so colleges can award pay rises above or below the recommendation.

The University and College Union (UCU) polled its FE members in the summer and found 86 per cent were prepared to take strike action to secure an “above inflation pay rise, binding national bargaining and a national workload agreement”.

“We know many colleges will ignore the AoC recommendation,” Jo Grady, general secretary of UCU, said. 

“To truly deliver a new deal for FE, the AoC needs to come forward with a package of measures that begins to close the gap with school teachers, addresses the excessive workloads causing staff to burn out and helps create a new national bargaining framework. UCU members demanding fundamental change are prepared to take action to achieve our aims.”

Unison said the 4 per cent offer will “do little to improve the lot of support staff” in colleges.

Head of education Mike Short said: “Colleges must do more to protect their lowest paid staff from the cost of living crisis. Bills continue to rise, but wages simply aren’t keeping pace.

“Until there’s a fully funded sector that can set national pay deals, staff and students will continue to suffer.”

Andy Murray, Unite’s head of education, said: “As the joint claim emphasised we need a new, fully funded, national bargaining framework to reach binding agreements with further education employers and to raise the profile of further education with government to ensure a sustainable level of funding for the sector which enables the sector to recruit and retain valued staff.”

FE will remain severely constrained

Today’s pay award is lower than the 5.4 per cent increase to 16-19 funding rates for 2025-26 and is only very slightly higher than the current rate of inflation, 3.8 per cent.

The funding rate boost was funded by a £190m injection announced by education secretary Bridget Phillipson in May, £160m of which will go to colleges and FE providers with 16-19 cohorts.

Phillipson advised the extra cash should be used for “strategic priorities, including [staff] recruitment and retention”.

Representatives of the AoC and the National Joint Forum, made up of five trade unions representing FE teachers and staff, met in June to negotiate staff pay following the STRB pay recommendation.

But the AoC delayed making its own proposal as it had not fully considered the recent funding announcements, such as an extra £155 million to cover national insurance hikes.

At the time, colleges were estimating the national insurance cash boost would cover between 50 to 85 per cent of costs but were also unsure of in-year student growth in September.

Hughes told FE Week in June that more work needed to be done with colleges who had low 16-19 numbers.

There are a reported 35 colleges with over 20 per cent of income from adult education funding, as well as colleges with large apprenticeship funding.

AoC’s analysis today said even for the colleges that can afford to offer a 4 per cent pay award, it will “barely maintain” the pay gap with schoolteachers rather than close it.

FE lecturers earn, on average, around £10,000 less than school teachers.

The recommendation is also lower than the 10 per cent pay rise (or £3,000 increase) demanded by unions in their annual pay claim made back in April.

The pay claim also called for the AoC to take action to close the pay gap FE and school teachers’ pay within three years.

UCU said it was “nonsensical” make a recommendation that keeps FE pay lower than the school sector amid a teacher recruitment crisis.

“A pay recommendation of just 4 per cent does not deliver for staff, students and the communities that rely on good quality college education,” Grady said.

David Hughes, chief executive of AoC agreed: “The 4 per cent recommendation is the right benchmark for us to set nationally, but we recognise that for many colleges it simply will not be possible. 

“It is crystal clear that even with a 4 per cent increase, college pay remains uncompetitive.”

“What we need is a planned and fully-funded approach over the coming years to bring college pay to the level we all know it needs to be, at least in line with schools and much more competitive with industry.

“We are also urging the unions to join us in a united campaign this autumn for better adult education funding. Without it, the sector will remain severely constrained in addressing the unacceptable pay gap with schools and industry.”