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Teacher pay awards should return to a “more sustainable level” than seen in the last two years, the government has told the School Teachers Review Body.

The Department for Education said it believes there is only headroom in budgets for the next financial year for schools to raise overall spending by 1.2 per cent, or £600 million.

Ministers have previously estimated that each 1 percentage point increase in teacher pay costs about £270 million – meaning the headroom would only allow for a pay rise of around 2 per cent.

The revelations suggest the government is gearing up for a fresh battle with unions, which have already voiced concerns ministers are seeking to “constrain” the STRB’s recommendations.

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