Marvin OnumonuThe Department for Education (DfE) has confirmed changes to the Teachers’ Pension Scheme (TPS) contribution rates from 1st April 2025.
Teachers earning below £34,873 will continue to pay a contribution rate of 7.4%.
Those earning more will see their rates increase by 0.3%, with an additional 1.7% pension increase.
This means a teacher earning £50,000 will pay an extra £10 monthly (£120 annually), while someone on £110,000 will contribute an extra £17 monthly (£198 annually).
Main findings from the consultation showed that 48.6% agreed with the draft regulations.
However, some expressed concerns over the financial impact on members, with many suggesting that members should choose their contribution rate, and others concerned about higher earners paying more.
The Government response underscored the aim to maintain a 9.6% contribution rate, part of TPS reforms from 2012.
The department noted the potential financial impact and worked with the Government Actuary’s Department (GAD) to find the smallest adjustment needed.
They reiterated that the tiered structure helps maintain the scheme’s affordability and attractiveness.
Respondents’ concerns about opt-outs were also acknowledged, with the department maintaining regular monitoring of participation rates.
