Teachers in England and Wales are to get a pay rise of 2.9% this year - the same as the headline rate of inflation.

NEW PAY RATES (INCREASE)

Newly-qualified: �18,105 (+ �510) Five years' service: �26,460 (+ �747) Upper scale: �28,668 (+ �807) to �33,150 (+ �900) School leaders: �31,416 (+ �852) to �88,155 (+ �933)

Those in inner London will get 4%, in recognition of the special problems of recruiting staff in the capital - with more for heads, deputies and assistant heads.

And to persuade experienced teachers to stay in London, the rise they get on crossing the performance "threshold" will almost double - from �2,148 to �4,002.

The increases mean typical classroom salaries after five years' service will rise to �26,460 - an extra �747 - or �30,000 in inner London.

'Not enough'

The starting salary for a newly-qualified teacher will go up to �18,105 (�21,522 in London).

Salaries for school leaders will start at �31,416 (�37,359 in London), with the top of the scale being �88,155 (�94,098).

Recent major developments have contributed to a substantial improvement in teachers' pay STRB report

What report says

Cost-of-living allowances for those in outer London and "fringe" areas in the south-east of England will go up by about 10%.

The awards recommended by the independent School Teachers Review Body have been accepted by the Education Secretary, Charles Clarke.

Subject to consultation over the next month, they will be paid from April.

INNER LONDON DEAL

4% general rise Allowance consolidated Performance bonus doubled More money for councils

Details

The biggest teachers' union has already called the overall rise "an insult".

And the leader of the Secondary Heads Association said the pay award would have "no effect" on recruitment and retention of teachers, a major problem throughout the country.

"Today's settlement will do nothing for schools in areas of high housing cost, especially in outer London and the South East, where the problems are chronic and schools are having to employ far too many poorly qualified and unqualified teachers from abroad," John Dunford said.

The rises in inner London were "welcome, but inadequate".

Reforms

But Mr Clarke said his priority was to give schools the money to pay for reforms aimed at reducing teachers' workloads.

"We made clear in the autumn that it was vital for schools to have enough room in their budgets to get on with school workforce remodelling in 2003-04," he said.

"The national pay award of 2.9% will assist that. It will help schools begin to address workload issues, which teachers consistently rate higher than pay as a priority to be tackled."

He was "delighted" about the special increase for inner London, which would help schools to attract and keep "talented teachers".

'Shortfall'

Local authorities had said the inflation-only general increase should allow councils to hire more support staff.

But having considered the pay award, Graham Lane, education chairman of the Local Government Association, said it "will cause problems for local education authorities as the government's assumption was for an increase of 2.5%, which leaves a shortfall of �60m".

"We face a 5.15% increase in employers' contribution to pensions and a 1% national insurance increase.

"The government's decision on funding will leave at least 13 LEAs with less government grant than needed to pass on increases to schools."