September marks a new dawn for teacher’s pensions, with employer contributions to the Teacher Pension Scheme (TPS) rising from 16.48% to 23.68%. Although this provides teachers with the comfort of a more secure retirement, there’s concern amongst education establishments around funding and how they will afford the increases.
Earlier this year the Department of Education announced that they will cover the rise in full for all state-funded schools and colleges during 2019-20; however, the same was not proposed for privately-funded schools. It’s been widely cited that this will leave the independent education sector facing an increase in costs of around £100 million per year from September 2019 onwards.
We’ve been talking to our contacts within the education sector who are looking for ways to navigate this uncertain time by helping them be more cost-efficient without compromising on the quality of services. We never advocate simply cutting costs or switching services for ‘cheaper’ alternatives; it’s about becoming more operationally efficient and finding a way forward that works for everyone concerned.
We’re happy to chat to any education establishment – private or state – and discuss how we can potentially help generate extra funds through identifying and realising long term cost efficiency solutions.
The Litmus team