Teachers’ Pension Employers Contribution Grant (TPECG) 2024-2025

The Department for Education (DFE) in October 2023 published the outcome of the valuation of the Teacher’s Pension Scheme (TPS) and confirmed a need to increase the Employers Contribution Rate by 5 percentage point (increase from 23.68% to 28.68%) to take effect from 1 April 2024. 

The Increase will be reflected in the Teachers’ Pension Employers Contribution Grant (TPECG) 2024-25 which will be published in May 2024 by the DFE and paid to the Local Authority in two Tranche's in May 2024 (Covering April 2024- August 2024) and October 2024 (covering September 2024-March 2025) The Teachers’ Pension Employers Contribution Grant shall be incorporated into the National Funding Formula (NFF) as from Funding Year 2025-2026. The Payments shall cover Maintained Schools, Maintained Special Schools, Pupil Referral Units, Alternative Provisions & Other Special School Settings.

An Additional Third payment shall be made in March 2025 to fund for High Needs Places (Maintained Special Schools). This will be a top-up to account for updated data on places in maintained special schools within the year. The Local Authority shall pass through 100% of the TPECG funding to Schools as listed on the eligibility section criteria as published on the Departments website notice on TPECG dated 11th March 2024 The Local Authority shall receive one payment for Centrally Employed Teachers (CET) at the second (2nd) Tranche Payment to Maintained Schools in October 2024. The Grant for CET shall also be incorporated into the National Funding Formula (NFF) for Financial Year 2025-26.

The DFE shall confirm in due course how the High Needs element of the Teachers’ Pension Employers Grant contribution in 2024-25 funding will continue to be provided in 2025 to 2026. Please click on this link for more details.