Marvin OnumonuHymans Robertson has urged independent schools to look closely at teachers’ pension options as costs keep rising.
The consultancy said that 401 schools left the Teacher’s Pension Scheme (TPS) between August 2019 and April 2025, according to a Freedom of Information request.
Schools are leaving the TPS to cut costs, but Hymans Robertson said it is important to make sure any new scheme still gives teachers a good pension.
Hannah English (pictured), head of dc corporate consulting at Hymans Robertson, said: “The TPS and STPS are very generous pension schemes for teachers and the upside of their benefits should not be understated.
“However, TPS costs rose most recently by c.20% in April 2024, and the Scottish TPS (STPS) costs rose by c.11% in the same month.
“The rise in cost of pension schemes – which did not increase benefits enjoyed by teachers – is just one of four cost increases that are burdening independent schools’ ability to balance their books.”
English added: “The other costs increases on schools are the hike in employer national insurance contributions (NICs), school fees becoming subject to VAT, and the scrapping of charitable business rates (for most schools in England).
“For a teacher being paid £40,000 in England, the rising cost of only the TPS and employer NICs will cost a school almost £3,000 per teacher.
“This figure does not include cost rises caused by the VAT increase or scrapping of charitable business rates – both of which further squeeze schools ability to balance the books.”
