AoC recommends 4% pay increase for the new academic year

Following constructive and positive discussions at the National Joint Forum (NJF), the Association of Colleges (AoC) is recommending a 4% pay increase for all college staff for the 2025/26 academic year, where colleges’ financial circumstances and funding allocations allow.

The recommendation comes after AoC requested a delay in negotiations earlier this year to allow time to assess the impact of the increased 16-19 funding announced in June’s Spending Review. While the additional funding is welcome, it falls short of what is needed to close the persistent and unjustifiable pay gap between schools and colleges.

Over the summer, AoC engaged with its members to better understand how the new funding would affect different colleges with different income mixes. That analysis shows that the impact is very mixed and that colleges still continue to face significant financial pressures. For those with little or no 16-19 provision, a reliance on the Adult Skills Fund, which has been cut by up to 6% this year, and on apprenticeship and other funding, our analysis shows that it will be impossible to meet the 4% recommendation.

For those colleges that can reach 4%, this will barely maintain the pay gap, rather than close it. What the sector needs is a planned and fully-funded roadmap to improve college pay over the coming years.

David Hughes, Chief Executive, Association of Colleges, said: “College leaders are once again in the difficult position of wanting to reward their hard-working staff and remain competitive with schools and industry, but without the funding to do so. The 4% recommendation is the right benchmark for us to set nationally, but we recognise that for many colleges it simply will not be possible.

“That is why we are asking the government to recognise the financial constraints facing colleges and the impact that has on recruiting and retaining the staff they need to deliver the education and skills the country needs. It is crystal clear that even with a 4% 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.”

Gerry McDonald, CEO, 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.”

Guidance:

• Gerry McDonald leads pay negotiations on behalf of the sector