Teachers Threshold Grant 2003-04 & 2004-05

ANNEX C

TEACHERS THRESHOLD GRANT 2003-04 & 2004-05

The Purpose of the Threshold grant

There are two pay scales for classroom teachers in England; the main and upper pay scales. Most teachers will be statutorily paid on one of these scales, although others such as self-employed, agency teachers or teachers in independent schools would be exempt from the statutory pay scales. Teachers gain access to the upper pay scale by being assessed against national performance standards set out in the School Teachers Pay and Conditions Document (STPCD), as amended from time to time. Head teachers, deputy head teachers and assistant head teachers (leadership group), and advanced skills teachers (ASTs) and LEA advisers reverting to classroom teaching are also entitled to be paid on the upper pay scale, without assessment, if they fulfil the eligibility criteria. Some teachers transferring from schools in Northern Ireland or from sixth form colleges may transfer threshold equivalent status, if they fulfil the eligibility criteria.

Grant is paid for defraying local education authority expenditure on the additional costs, in the period commencing on 1 April 2003 and ending on 31 March 2005, arising from teachers who are entitled to be paid on point one of the upper pay scale.

Terms used in this document

“Relevant teacher” means:

a teacher statutorily subject to the School Teachers Pay and Conditions Document, paid on the upper (post-threshold) pay scale for classroom teachers because they have either (a) been formally assessed as meeting the national standards, or (b) because they fulfil the eligibility criteria laid out in the STPCD after having stepped down from the leadership group or from being an AST or LEA adviser, or (c) because they fulfil the eligibility criteria laid out in the STPCD having transferred threshold equivalent status from Northern Ireland or sixth form collegesand/or;
a teacher employed by a local authority in a children’s home maintained by the local authority, including local authority secure units and community homes with education and other establishments for children maintained by local authorities in the exercise of a social services function, who are paid on a scale mirroring the upper (post-threshold) pay scale for classroom teachersbecause they have either (a) been formally assessed as meeting the national standards, or (b) because they fulfil the eligibility criteria laid out in the STPCD having stepped down from the leadership group or from being an AST or LEA adviser, or (c) because they fulfil the eligibility criteria laid out in the STPCD having transferred threshold equivalent status from Northern Ireland or sixth form colleges.

“Main pay scale” means the pay scale for classroom teachers set out in the STPCD.

“Upper pay scale” means the pay scale for post-threshold teachers set out in the STPCD.

“Current Annual Grant Amount” means the annual grant amount at that time which has been calculated using the latest available data on post threshold teachers held by the DfES.

Calculation of the amounts of grant payable to authorities

Annual grant calculations

Payment from the DfES will be calculated to allocate to authorities sufficient funding to fully defray the additional salary costs to schools of relevant teachers moving from the top of the teachers’ main pay scale to point one of the upper pay scale, whether national or inner London pay scales, including tax and national insurance contributions.

Annual grant levels will be calculated using data on post threshold teachers held by the DfES, updated from time to time. Initially this will be the most recent FTE provided by authorities under the terms and conditions of Special Grant Reports 70, 74 and (for children’s homes) 106, adjusted to take account of current national wastage rates. Annual grant levels will be readjusted once the data from the 618G school census, data from Cambridge Education Associates on new applicant numbers and the LEA end of year audit returns required from authorities become available.

Quarterly grant payments

Authorities will receive nine instalments relating to the two financial years:

The first Instalment will be 30% of the first year’s current annual grant amount.
The second and third Instalment will each be approximately 25% of the first year’s current annual grant amount.
The fourth Instalment will be the first year’s current annual grant amount minus the first, second and third instalments previously paid.
The fifth Instalment (the first in the second year) will be 30% of the second year’s current annual grant amount.
The sixth and seventh Instalment will each be approximately 25% of the second year’s current annual grant amount
The eighth instalment will be 90% of the second year’s current annual grant amount minus the fifth, sixth and seventh instalments previously paid for authorities who submitted an end of year audit form for the first yearsigned by an auditor appointed by the Audit Commission; or 80% of the second year’s current annual grant amount minus the fifth, sixth and seventh instalments previously paid for authorities who have not yet submitted an end of year audit form for the first financial year signed by anauditor appointed by the Audit Commission.

The ninth instalment which will be the remaining 10 or 20%, as appropriate, of the second year’s current annual grant amount will be paid once duly signed end of year audit forms for both financial years have been submitted.

Instalments five to nine may be adjusted to reflect balance of grant detailed in audit statements.

The DfES will not guarantee payment if audit forms are not received by deadlines.

Grant payment dates

Payment will be made to local authorities by:

first instalment-15 May 2003
second instalment-15 August 2003
third instalment-15 November 2003
fourth instalment-16 February 2004
fifth instalment-17 May 2004
sixth instalment-16 August 2004
seventh instalment-15 November 2004
eighth instalment-15 February 2005
ninth instalment-on receipt of both end year audit forms.

Main features of grant

The grant is intended to provide authorities with funds from which to fully fund the additional salary costs of moving relevant teachers from the top of the teachers’ main pay scale to point one of the upper pay scale. Authorities will determine the method of gathering data on full time equivalent teachers employed in schools and centrally within the authority in order to defray the grant to schools.

Conditions for the payment of the grant

Each local authority shall use the grant only for the specific purpose in respect of which it is paid. Specifically, in the case of those relevant teachers referred to in paragraph 6, the grant will be used solely for meeting the costs of additional pay received by those who are entitled to be paid on the pay scale for post threshold teachers over and above the sums to which they would be entitled were they paid on the main pay scale for teachers in each case set out in the STPCD applicable to the period in question and associated pension and national insurance contributions.

Information to schools

Each local authority should give to the governing body of each establishment at which teachers who receive threshold payments are employed, details of the grant paid.

Overpayments

Any overpayment of grant must be paid back to the Secretary of State.

Audit statement

By 30 June following each financial year in which grant monies are payable, the Chief Finance Officer of each authority which receives grant monies shall certify an audit form completed by the authority and submit it duly certified by him to an auditor appointed by the Audit Commission. The audit form must confirm:

athat the authority has appropriate mechanisms in place to identify relevant teachers and to pay schools the appropriate grant in respect of each relevant teacher employed in each school;

bthat the authority has used the grant money solely for the purposes for which it was given and;

cthat these terms and conditions have been met.

The auditor shall send the audit form, certified by him, directly to the

Secretary of State, to be received no later than 30 September following the end of each financial year in which grant monies are payable.

Further information

Each authority shall provide such further information as may be required by the Secretary of State for the purpose of determining whether they have compiled with these terms and conditions