Across the UK, the public sector has had a cap on pay rises since 2011, initially with the two-year pay freezes, followed by the 1% pay caps – until now. Earlier this week, on Tuesday 24th July, the BBC reported an announcement by the UK government, stating they would be giving pay rises to a million people in the public sector.
The new announcement means that teachers will receive a pay rise between 1.5% and 3.5% funded by a £508m Department of Education grant given to schools to cover the cost. Education Minister, Nick Gibb, explained, “’We will be providing a teachers’ pay grant of £187 million in 2018-19 and £321 million to all schools in England in 2019-20.” With this new funding provided to schools, on top of their core budgets from the National Funding Formula, comes additional responsibility. Institutions must be seen to control and track these grants, in addition to existing funds already received, in an effective and efficient manner.
Whilst this is positive news for those receiving an increase, the grants also have a direct impact on the administration of education budgets. Following the announcement, most approved 2018/19 budgets will now need to be altered and reapproved, which, in the short term, will create a ‘funding lag’ between the backdated pay and existing budgets. This generates an overall funding shortfall that could directly impact transitory projects.
Being blindsided by changes in funding makes it even more vital to implement a system that highlights these short falls instantly, allowing provisions to be made quickly to maintain the financial health of the organisation.
It is also important to note, from what we understand, that these rises are not necessarily a blanket increase for all staff. Whilst this should be straight forward, it often isn’t, especially within Multi Academy Trusts (MATs) where administrating different pay scales and grants can be difficult across numerous sites.
As a provider of integrated Financial Management and HR and Payroll software, PS Financials ensures there are the right processes in place to make the back-office management of these funds, and subsequent admin, as straightforward as possible. The system enables the Education sector to have a complete overview across their Academies and Trusts, with the functionality to implement things, such as staff pay changes, quickly and accurately. Our HR and Payroll software integrates with our core financial management solution in real-time, eliminating the need to re-enter information into each system and removing any opportunity for human error whilst improving data accuracy. In a MAT scenario, operating a centralised system means all schools can be updated from one place, administering consistency across the whole Trust.
Government changes happen, often without warning! Having a stress-free back-office management solution, with an integrated financial management, HR and Payroll system, ensures your institution are best placed to manage change in an effective manner.
To find out about PS Financials’ system and the advantages it can bring to your institution, visit www.psfinancials.com/education
You can also read more about the public sector pay increase here.