SL(6)647 – The School Teachers’ Pay and Conditions (Wales) Order 2025
Background and Purpose
The School Teachers’ Pay and Conditions (Wales) Order 2025 (“the Order”) makes provision for the remuneration and conditions of employment of school teachers in Wales, to be determined by reference to the provisions set out in section 2 of the School Teachers’ Pay and Conditions (Wales) Document 2025 and guidance on school teachers’ pay and conditions (“the Document”). The Document can be found on the Welsh Government website.
Following consideration of the recommendation in the Independent Welsh Pay Review Body’s sixth report, a 4% uplift will be applied to all scale points and allowances.
The Order introduces new pay and allowance ranges in the national pay framework for school teachers in maintained schools in Wales only. Non-maintained schools in Wales have the freedom and flexibility to adopt pay and allowance ranges for their teachers which best reflect their local circumstances.
The Order will come into force on 7 October 2025. However, the provisions on teachers’ pay and conditions under section 2 of the Document will have retrospective effect from 1 September 2025 (such retrospective effect being permitted under the Education Act 2002).
The Order revokes the School Teachers’ Pay and Conditions (Wales) Order 2024 [S.I. 2024/1119 (W. 186)].
Procedure
Negative
The Order was made by the Welsh Ministers before it was laid before the Senedd. The Senedd can annul the Order within 40 days (excluding any days when the Senedd is: (i) dissolved, or (ii) in recess for more than four days) of the date it was laid before the Senedd.
Technical Scrutiny
No points are identified for reporting under Standing Order 21.2 in respect of this instrument.
Merits Scrutiny
The following point is identified for reporting under Standing Order 21.3 in respect of this instrument.
1. Standing Order 21.3(ii) – that it is of political or legal importance or gives rise to issues of public policy likely to be of interest to the Senedd
The Welsh Government’s Regulatory Impact Assessment (“RIA”) sets out the various options it identified when considering the remuneration and conditions of employment of school teachers in Wales. The options include implementing changes as recommended by the Independent Welsh Pay Review Body (“the IWPRB”), including a pay award of 4.8% (Option 2), and implementing a pay award of 4% (Option 3).
The Welsh Government outlines the costs associated with Option 2 in the RIA:
An increase of 4.8% across all teacher scale points and allowances equates to an estimated increase to the overall pay bill of £52.818m for financial year 2025-26 (September 2025 to March 2026) and £90.546m for the full academic year from financial year 2026-27.
Meeting the cost of teachers’ pay is part of the core funding provided by local authorities as supported by the Local Government Settlement. However, where the pay award is higher than forecast in budgeting agreements, the Welsh Government has previously provided additional grant funding in-year to cover costs of higher pay settlements.
However, following careful consideration of the financial context, it is not affordable within Welsh Government budgets to provide full funding for the additional grant funding in-year. In this context, if the Welsh Government were to agree 4.8%, an element of this would be unfunded and create additional pressure on local authority and school budgets. This could result in redundancies which are already a concern to teaching unions and schools.
The Welsh Government also outlines the costs associated with Option 3 in the RIA:
An increase of 4% across all teacher scale points and allowances equates to an estimated increase to the overall pay bill of £10.4m for 7 months of 2025-26 and £17.8m for the full academic year (2026-27 Financial Year impact.
However, to mitigate the impact of these costs on school and local authority budgets, which have already been set for 2025-26, the Welsh Government will provide additional in-year grant funding via the Local Authority Education Grant, to support local authorities and schools with the pay uplift.
The Welsh Government states that Option 3 was chosen in view of the benefits and costs outlined in the RIA.
We note the Welsh Government’s comments in the RIA in relation to consultation with stakeholders:
Overall, the response to the consultation was generally not supportive of the award of 4% due to it being lower than the IWRPB recommendation. However, all consultees stressed that the award needs to be fully funded.
Welsh Government response
A Welsh Government response is not required.
Legal Advisers
Legislation, Justice and Constitution Committee
24 September 2025