A total of 335 private schools have left or announced they plan to leave the Teachers’ Pension Scheme (TPS) since 2018, amid expectations that the contribution rate could rise to 30 per cent of salary by next April, a freedom of information request from Punter Southall Aspire has revealed.

This is an increase of 51 private schools from a previous freedom of information request obtained by Punter Southall Aspire in October 2021, which found that 284 private schools had left or planned to leave the TPS.

Of the 335 schools, 116 were planning to leave on a phased withdrawal basis, which means their currently employed staff will remain in the scheme, while the scheme will be closed to new recruits.

In the same freedom of information request, the Department for Education noted that 13 schools had joined the TPS.

Previous analysis by LCP found that, following the Treasury’s confirmation that the Scape discount rate will reduce from inflation plus 2.4 per cent a year to inflation plus 1.7 per cent a year, employer contributions could rise to as much as 30 per cent of salaries.

Punter Southall Aspire employee benefits principal, Caroline Gaines, said the extra cost had been pushed back to April 2024 but was “focusing the minds” of bursars and governors to start exploring and reviewing the options available.

“We know teaching staff are vital to the success of independent schools and schools need to retain and recruit by offering good quality benefits if they are leaving or considering leaving TPS,” she stated.

“We have been helping schools by thoroughly reviewing all the options available with the governors to ensure any decision is carefully considered. We then help demonstrate the value of an alternative pension and benefit structure can deliver to teachers while helping manage the school’s future costs.

“A school should not assume its teachers are experts in pensions. Information and education for everyone is key to ensuring any proposed change is fully understood to allow for meaningful consultation.

"We have helped schools take control of financial uncertainty while trying to support them in maintaining staff morale with a meaningful alternative pension and benefits package.”

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