NUT GUIDANCE - SUPPLY TEACHERS:
PAY, CONDITIONS AND WORKING TIME
FOR 2014/15 (REVISED JANUARY 2015)
This NUT guidance note looks at pay, conditions and working time for supply
teachers, whether employed via supply teaching agencies or directly by schools, local
authorities and academies.
SUPPLY TEACHERS UNDER THREAT
Supply teachers who can adapt quickly and effectively at short notice to different schools,
pupils, subjects and age groups play a critical role in the effective functioning of schools.
The current situation facing supply teachers - in particular the increasing dominance of
agencies and consequent cuts in pay and conditions - means that that role is under threat.
A June 2014 NUT survey showed that around two thirds of supply teachers now get their
supply work principally via supply agencies. This means that:

agencies are ever-increasingly draining money from the public purse, while driving
down supply teachers’ pay and conditions;

teachers who work via agencies are increasingly employed under inappropriate
‘umbrella company' arrangements; and

many other teachers are deterred from supply teaching or are unable to get supply
work due to schools' use of unqualified staff, both of which threaten the availability of
supply teachers as a whole.
The NUT's webpage for supply teacher members - www.teachers.org.uk/supply - includes
NUT guidance on matters like the Agency Workers’ Regulations and working for umbrella
companies and full details of the NUT’s ongoing campaign for a better deal for supply
teachers.
SUPPLY TEACHERS EMPLOYED BY/THROUGH AGENCIES
Supply teachers employed by or through agencies are not covered by the "national pay and
conditions" set out in the School Teachers’ Pay and Conditions Document (STPCD) and
elsewhere. Their pay is determined by the individual agency - and agency pay rates
generally undercut the national pay rates for teachers in schools.
The June 2014 NUT survey found that 67 per cent of respondents now find work solely or
mainly via agencies, up from 50 per cent in 2010. The number of agencies now operating in
England and Wales could be over 250 – and this figure may exclude many single person
operations.
Agency supply teachers and pay
Agencies are free to determine their own pay levels, so wide disparities in pay rates are in
operation across different agencies and different regions.
Only 10 per cent of teachers told the 2014 NUT survey that their pay was in line with the rate
of pay they would be entitled to if employed directly by a school (currently £165 at the Main
Pay Range maximum or £192 at the Upper Pay Range maximum, both outside London).
Many of these teachers were recent entrants to teaching - very few agencies will offer
experienced teachers rates of pay which match the rates they would receive if employed
directly.
The NUT survey showed that:




Half of respondents said their daily rate of pay was £100 - £124
22 per cent said it was between £125 and £149
Less than 4% said that they were paid £150 (still 10 per cent below the MPR
maximum) or above
One in six said that they were paid less than £100.
More worryingly, pay rates now increasingly vary between placements. Pay is frequently
lower for short term engagements, may vary by subject and certainly varies regionally.
Unfortunately some schools have begun to contribute to this by seeking to bargain with
agencies which then pass on any cuts in income to the teachers concerned.
Agency supply teachers and pensions
Employment by or through supply agencies is not pensionable under the Teachers’ Pension
Scheme (TPS), partly because supply agencies are not currently permitted to participate in
the TPS. The NUT is pursuing this issue with the DfE in order to secure equal access to the
TPS for all teachers working on state funded schools.
The law, however, now requires all employers, including agencies, to offer workplace
pensions. The introduction of these ‘auto-enrolment’ provisions has been staged but larger
employers are already required to have set up their new scheme. In order to be eligible for
auto-enrolment onto a workplace pension, agency supply teachers must be aged between
22 and the State Pension Age, and in receipt of earnings of more than £10,000 per year.
The employer must pay a minimum pension contribution of 1 per cent of “qualifying
earnings”1, rising to 3 per cent by 2018, while the employee pays a minimum of 0.8 per cent
(rising to 4 per cent by 2018) and the Government pays 0.2 per cent (rising to 1 per cent by
2018).
The unpredictable nature of an agency supply teacher’s employment can cause problems.
Agency teachers, especially those working for different agencies on short term assignments,
may find their enrolment on a workplace pension scheme is postponed for up to three
months owing to concerns that their income will be insufficient to meet the earnings
threshold for auto-enrolment. This is less likely to be an issue for agency teachers on long
term assignments such as maternity leave or long term sickness absence cover. Supply
teachers contributing to a workplace pension in this way may also end up with several
workplace pension ‘pots’ depending on their working patterns and the number of agencies
they use.
Agency Worker Regulations
The Agency Worker Regulations 2010 apply to supply teachers who have completed 12
weeks in the same assignment. They provide that such teachers then become entitled to the
same ‘basic’ pay and conditions as if they had been employed directly by the employer (local
authority, school governing body or academy trust). Where an agency supply teacher is
1
‘Qualifying earnings’ are either the amount an employee earns before tax between £5,772 and £41,865 a year; OR the
employee’s entire salary or wages before tax. The employer chooses how to work out qualifying earnings.
placed in a series of schools in which the LA is the employer, continuity for the purposes of
the AWR is not broken.
These ‘basic’ pay and conditions only cover rates of pay, hours of work and annual leave and not other benefits such as sick pay, pension or maternity pay. The 12 weeks must be
continuous, although a break of up to six weeks for any reason only ‘pauses’ the clock.
Some other ‘breaks’ are also allowed, such as annual leave, school closures, sickness and
maternity/parental leave.
The teacher’s pat rate should then be assessed in the same way as for a teacher in regular
service - ie according to the school’s pay policy - although “basic” pay could be as low as M1
and still remain compliant with the Regulations.
For more detailed NUT guidance on the Agency Worker Regulations 2010, please go to
www.teachers.org.uk/supply
‘Swedish Derogation’ contracts
Agencies may try to avoid their pay obligations under the Agency Worker Regulations by
offering "permanent" contracts of employment known as Swedish Derogation contracts. The
NUT opposes the use of such contracts, although they are lawful and do not breach the
AWR.
Such contracts provide that the teacher will receive a minimum payment during periods
when no suitable work is available, including school closures and periods where no supply
cover is required. The ‘minimum’ payment must not be less than 50 per cent of the highest
weekly earnings in the previous 12 weeks of the assignment. Although such contracts
remove rights to equal STPCD pay, they do not affect rights to equal conditions that are not
pay related e.g. hours of work.
‘Zero hours’ contracts
Zero hours contracts are the most extreme example of precarious employment for teachers.
There is no legal definition of a zero-hours contract. Their terms vary but what they have in
common is that there is no guarantee of work or pay from one week to the next. They are
now being encountered in the schools sector, particularly in ancillary education services.
‘Umbrella’ companies
An umbrella company is a company that acts as an employer to agency workers, such as
supply teachers. Umbrella arrangements usually involve four parties – the teacher, the
school, the agency and the umbrella company. The teacher’s employment contract is with
the umbrella company, not the agency. Typically, the agency will agree an assignment and
pay rate with the school and then contact the teacher about the assignment. The umbrella
company receives the payment from the school for the work undertaken by the teacher. It
processes the payment, deducting PAYE income tax, employee’s and employer’s National
Insurance contributions and the umbrella company’s fee. The residual sum, is then paid to
the supply teacher as net pay.
A common issue for those working for umbrella companies relates to travel and subsistence
expenses. HMRC rules are complex, and failure to observe them correctly can give rise to
problems at a later date. General HMRC advice on legitimate expenses can be found at
http://www.hmrc.gov.uk/incometax/tax-allow-ees.htm.
Claiming tax-deductible expenses
should not, however, be contemplated without seeking authoritative advice from your local
tax office.
Umbrella companies largely sell themselves on the basis that supply teachers can reduce
their tax bill by claiming legitimate business expenses. However, HMRC rules on the taxation
of expenses and allowances for temporary workers are complex. Ultimately, it will be the
teacher – not the umbrella company - who bears the liability if HMRC finds any nonallowable expenses. Also, although supply teachers working for umbrella companies may
be able to offset some tax liability against legitimate expenses - subject to the above caveats
– this gain may be cancelled out by the fact that they have to pay not only the umbrella
company fee but also both employee’s and employer’s National Insurance contributions.
The NUT is deeply concerned about practices adopted by
including some of the advice provided regarding tax matters or
can be compelled by the umbrella company to accept work.
members to be fully informed before entering into any formal
such companies.
More
detailed
NUT
guidance
www.teachers.org.uk/supply.
on
umbrella
some umbrella companies,
the implication that teachers
The NUT strongly advises
contractual relationship with
companies
is
available
at
Security of Employment
Supply teachers are generally engaged on a day-to-day basis and do not have the security
of a continuing contract of employment enjoyed by their permanent colleagues. Some supply
agencies, however, offer ‘guaranteed work’ contracts which claim to offer a commitment to
provide daily supply work, offering the same daily rate of pay to the supply teacher even on
days when no work is available. Such arrangements usually require supply teachers thus
engaged to guarantee their availability at all times. NUT members considering such
employment are strongly advised to read the terms and conditions very carefully, as
penalties may apply in the event that they are unable to work on any given day, e.g. as a
result of illness.
Where a teacher on a longer term supply engagement makes a positive impression on a
particular school, the school may consider offering the teacher a formal contract of
employment.
Transfer or ‘finder’s’ fees
Supply agencies are permitted to charge transfer or ‘finder’s’ fees to schools who wish to
take on a supply teacher as a permanent employee. Two important conditions, however are
that:


The school must be given the option in the contract with the agency to decide, at the
point when it decides to offer the teacher a permanent job, either to pay the fee or to
continue employing the teacher through the agency for a set period after which it will
not have to pay the fee.
Transfer fees can only be charged if the transfer takes place within whichever is later
out of 14 weeks from the start of the first assignment with the hiring employer, and 8
weeks from the end of any assignment. If there has been more than one assignment
with a break of more than 42 days between assignments the later assignment is then
taken as the first assignment.
Although transfer fees are often cited as a major obstacle to supply teachers gaining
permanent employment, the conditions do mean that transfer fees are slightly less likely to
be enforceable in the schools sector than other areas of employment.
Obtaining more information on supply teacher agencies
The growth of agencies means that many teachers can find work only through them - and
consequently may face the kinds of difficulties outlined above. It is not always easy to obtain
information about supply agencies before seeking work from them, a situation which has led
to the development of the website www.ratemyteachingagency.com which enables agency
supply teachers to log and share comments about agency practices.
SUPPLY TEACHERS EMPLOYED DIRECTLY BY LOCAL AUTHORITIES OR SCHOOLS
Supply teachers employed directly by a local authority or school governing body must be
paid according to the provisions of the School Teachers’ Pay and Conditions Document
(STPCD). This has generally meant that they are paid better, as well as being entitled to join
the Teachers’ Pension Scheme. Recent changes to the STPCD provisions on how all
teachers' pay entitlements are determined may, however, significantly affect such teachers.
Given the rise of supply agencies, it is unsurprising that the proportion of supply teacher
members employed directly has fallen. The 2014 NUT survey found that only 8.4 per cent of
supply teachers work via local authority supply “pools”, compared to 10.5 per cent in 2010,
while direct employment by schools had fallen to 25 per cent from 39 per cent.
Rates of Pay
The STPCD (School Teachers’ Pay and Conditions Document) states that
“Teachers employed on a day-to-day or other short notice basis must be paid in accordance
with the provisions of this Document on a daily basis calculated on the assumption that a full
working year consists of 195 days, periods of employment for less than a day being
calculated pro rata”.
The abolition of "pay portability" means that teachers taking up a post at a new school are no
longer entitled to be paid at least at the same pay rate as in their previous post. This means
that supply teachers starting new assignments have no minimum pay entitlement reflecting
their experience, even if they have worked at that school previously.
The NUT recommends an hourly rate of 1/950th of annual pay for each hour of teaching or
other work, while the DFE has recommended that any hourly rate of pay should be on the
basis on a day of 6.48 hours (1265/195) or the total length of the school’s pupil day (see
following section).
Appendix 1 sets out the daily pay rates for each point on the usual pay scales, according to
the rules set out above.
Supply teachers do not receive any pay during holiday periods. As full-time teachers work for
195 days a year, this daily pay rate of 1/195 includes an element for ‘holiday pay’.
Pay Progression
Supply teachers are entitled under the provisions of the STPCD to be considered for pay
progression on the Main or Upper Pay Range each year and to apply to go through the
threshold onto the Upper Pay Range.
The length of supply assignments and the fact that supply teachers are not usually covered
by appraisal mean that schools’ arrangements and requirements for pay progression
decisions obstruct supply teachers’ access to pay progression. Also, the removal of
portability means that any pay progression may subsequently be lost whenever a new
engagement begins, since that engagement may be offered at whatever pay point the
employer wishes.
Some supply teachers will, however, be in employment where they can be assessed for pay
progression - for example, when employed via an LA supply pool or on a recurring basis in
the same school. In such cases there is no reason why assessments for pay progression
cannot be carried out. Although supply teachers are not covered by statutory appraisal
requirements, the STPCD states that the employer carrying out the pay assessment should
take the pay decision on the basis of the evidence available to inform the pay decision,
which could be assisted by including the teacher in some form of appraisal appropriate to
the working circumstances.
Working Time for Supply Teachers
The STPCD does not specify the length of the supply teacher’s working day. In some cases,
employers seek to offer supply teachers an hourly rate rather than a daily rate, even where
the supply teacher has taught for the full pupil day. Do not accept an hourly rate when you
should be entitled to the daily rate - it will lead to lower pay.
Distinction between long term and short term supply
Typically, supply teachers engaged for short term periods of a few days only might expect to
carry out basic supervision of classes using materials set by the absent teacher or his or her
line manager. These might be marked in class, or alternatively collated for marking by the
absent teacher once they have resumed teaching duties. Most supply teachers engaged on
a short term basis are unlikely to be expected to carry out duties beyond basic supervision
and limited teaching, with little or no planning or assessment - but the result may be that they
will be paid less than a supply teacher whose work at the school is of a longer duration.
Long term supply teachers will usually expect to fulfil most if not all of the duties of the
substantive post holder. As a result, they will typically plan, deliver and mark lessons
according to the appropriate scheme(s) of work, be responsible for registration, participate in
non-teaching duties, following up disciplinary issues, writing reports, and attendance at staff
meetings and parents’ evenings. Consequently, such teachers are typically paid at a higher
rate than their short term supply teacher counterparts.
Other Conditions of Service Issues
Supply teachers covering for a particular absent teacher should enjoy the same rights - they
should have the protection of `rarely cover provisions’, rather than being expected also to
provide general cover, and have the right to PPA time.
Sick Pay, Maternity Pay and Pensions
Supply teachers are not covered by the national sick pay or maternity pay provisions but
may be entitled to statutory sick pay or maternity pay rights in certain circumstances.
Since 1 January 2007, supply teaching engagements have been automatically pensionable
under the Teachers’ Pensions Scheme, unless you decide to opt out of the scheme.
SUPPLY TEACHERS IN ACADEMIES AND OTHER NON-MAINTAINED SCHOOLS
Supply teachers employed directly by non-maintained schools - such as academies, free
schools and independent schools - are employed on the terms determined by that employer.
These may be in accordance with national pay and conditions in many such schools, but the
employer is under no obligation to do this.
NEXT STEPS – NUT SUPPLY TEACHER MEMBERS
Getting involved - locally
The NUT wants supply teacher members be as fully involved as possible in their Union,
networking with each other and contributing to NUT campaigns on supply teacher issues
and more broadly on all other campaigns as well. NUT associations may have local NUT
supply teacher networks to help promote your involvement, while some others have a supply
teacher officer to take a lead in organising supply teacher members and represent their
views.
Getting involved - nationally
If you’d like to join the NUT’s consultative group of supply teacher members who are helping
advise on the NUT’s work for supply teachers, email supply@nut.org.uk giving your NUT
membership number or home postcode. An email discussion group is also planned.
CONTACT YOUR UNION AND GET INVOLVED
NUT members in England requiring individual advice and support should in the first instance
contact the NUT AdviceLine on 0203 0066 266 or nutadviceline@nut.org.uk (open from 9
am to 7 pm). Members in Wales can contact NUT Cymru on 029 2049 1818.
The NUT is concerned to ensure that supply members should have the opportunity to
develop responses to workplace problems with other supply members, but also with other
teacher and head teacher colleagues locally. We strongly encourage our supply teacher
members to contact their local representatives to discuss how they can best participate in
their local association and express their concerns and views.
If you are working in a school which has an NUT representative, they will be the best starting
point. If not, contact your local division or association direct. The contact number is on your
membership credential.
The NUT website has a map showing contact details for all NUT local associations at
www.teachers.org.uk/contactus
The following numbers may also be helpful:
NUT membership enquiries
Tel: 0845 300 1666
NUT instant membership hotline
Tel: 0845 300 1669
HMRC contact details
search2.hmrc.gov.uk/kb5/hmrc/contactus/view.page?record=hpkspulskxM
National Union of Teachers
September 2014
APPENDIX 1
DAILY SALARY RATES FOR SUPPLY TEACHERS FROM 1st SEPTEMBER 2014
The table below sets out the daily rates for each pay scale point, calculated on the basis of
1/195 of the appropriate full-time pay rate.
INNER LONDON
Annual Pay
OUTER LONDON
Daily Rate
Annual Pay
Daily Rate
MAIN PAY RANGE
M1 min
£27,543
£131.40
M2
£28,980
£139.54
M3
£30,490
£148.18
M4
£32,079
£157.36
M5
£34,547
£170.70
M6 max
£37,119
£183.71
£141.25
£25,623
£148.62
£27,211
£156.36
£28,896
£164.51
£30,685
£177.16
£33,287
£190.35
£35,823
£217.09
£38,355
£227.75
£39,775
£235.41
£41,247
UPPER PAY RANGE
U1 min
£42,332
£196.69
U2
£44,412
£203.97
U3 max
£45,905
£211.52
FRINGE AREA
Annual Pay
REST OF E & W
Daily Rate
Annual Pay
Daily Rate
MAIN PAY RANGE
M1 min
M2
M3
M4
M5
£23,082
£112.94
£24,821
£121.87
£26,731
£131.67
£28,713
£141.79
£30,887
£152.97
£118.37
£22,023
£127.29
£23,764
£137.08
£25,675
£147.25
£27,650
£158.39
£29,829
M6 max
£33,244
£165.06
£170.48
£32,187
£184.24
£34,869
£190.86
£36,161
£197.72
£37,496
UPPER PAY RANGE
U1 min
£35,927
£178.82
U2
£37,217
£185.44
U3 max
£38,555
£192.29
Note: Points M2 to M5 and U2 are not mandatory points.