The national agreement between lecturers' unions and the Association of Colleges will mean increases of 3% in each of the next two years.

A joint statement from employers and unions said that this would bring a greater sense of stability to the sector, after a prolonged campaign, including strike action, for improved pay.

"The deal will provide for stability in industrial relations and give colleges and staff a longer term view of recommended pay awards for planning purposes," said the Association of Colleges.

Lecturers' union, Natfhe, said that the agreement was a "significant step in the right direction" towards closing the pay gap between colleges and schools.

College staff have complained that they have been left behind while school teachers have received considerable pay increases.

Settlement

The Association of Teachers and Lecturers emphasised that this national deal must be applied locally - and that colleges should not be allowed to avoid the increases.

"We are encouraged that a positive national settlement appears to be in our grasp and are delighted that the prospect of any industrial action is receding," said Chris Wilson, chair of the union's further education committee.

"However, we will be watching carefully to make sure that individual colleges fully honour any national deal and college principals should understand that we will be vigorous in making national deals stick locally."

Unions representing lecturers and support staff at the colleges had been asking employers to improve their offer of a 2.3% rise.