TPS contribution cap leads to strike at two independent schools
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Teachers at two independent schools, Haberdashers Boys and Girls Schools in Hertfordshire, have walked out over a proposal to cap employer contributions to the Teachers’ Pension Scheme. Teachers' union NASUWT has not ruled out further strike days.
About 150 teachers working at the schools are taking five days of strike action spread over last week and this as the schools are planning to cap their employer contribution to the Teachers’ Pension Scheme. This would put the burden of meeting any future TPS contribution increases on employees.
The NASUWT union also accused the schools of “fire and rehire tactics to try to force through these changes, with large numbers of teachers receiving letters of dismissal and re-engagement on amended contracts”.
NASUWT General Secretary Matt Wrack said there was no need for a pension cap as the government has not announced any increase to the employer contribution rate.
“This is a defensive move designed to protect the employer from any future costs at the expense of staff. The employer is seeking to offload its financial responsibilities and make teachers foot the bill in the future. To make matters worse, it is using bullying fire and rehire tactics to try to force through these changes,” he said.
“These plans are completely indefensible and demonstrate a lack of respect for hard-working teachers.”
Stephen Howells, NASUWT national executive member for Hertfordshire, called the changes “an unacceptable attack on the basic pay and conditions of teachers”, saying the are “completely without any justification”.
“These plans are completely indefensible and demonstrate a lack of respect for hard-working teachers.”
Stephen Howells, NASUWT national executive member for Hertfordshire, called the changes “an unacceptable attack on the basic pay and conditions of teachers”, saying the are “completely without any justification”.
A spokesperson for the school said since 2015, the school has absorbed pension contribution increases equivalent to an additional £2.57 m per annum.
“Those rising costs are not sustainable indefinitely, and schools have a responsibility to ensure long-term financial stability for current and future pupils and staff alike,” the spokesperson said.
TPS employer contributions rose to 28.68% in 2024 based on 2020 valuation data, with members contributing between 7.4% and 12% of salary for an accrual rate of 1/57th. The next change to employer contributions will be announced late this year and be effective from April 2027.
The schools have been engaged in “a long and careful” consultation process about the proposed pension changes, the spokesperson added, saying these were driven by the need to ensure long-term financial sustainability in a challenging environment for independent schools.
As part of the negotiations, the school offered to increase the cap from 28.68% to 30%, which was rejected in a vote.
Executive principal of both schools, Gus Lock, said: "We are disappointed strike action has gone ahead, particularly as constructive dialogue with staff and union representatives has continued throughout. We remain committed to working towards a resolution and supporting all members of our school community during this period.”
The school said it remains open during the strike, with “normal school operations”.
The employer cost of the Teachers’ Pension Scheme has prompted some private schools to leave TPS altogether and put in place defined contribution arrangements; since 2019, about 400 have done so, industry figures suggest.
In the higher education sector, post-1992 universities are legally obliged to offer TPS access, but a growing number of universities have started employing staff through private companies to avoid the pension cost, prompting strike action and a letter to ministers by the University and College Union.
At fee-paying schools, pension cost increases can be passed on to parents, but schools have become more reluctant to go down this route as they risk cannibalising their own market. Even before the government’s recent VAT change, there was a 20% real-terms increase in average private school fees between 2010 and 2023, and a 55% rise since 2003. The average fees are £15,200 net of bursaries and scholarships, according to the Institute for Fiscal Studies, while the Good Schools Guide cites £19,000.