A row is brewing over performance-related pay

The inflation-level award is part of a 29-month deal which will bring another 2.95% for 2005-06 in phased increases.

September will become the new annual pay settlement date. There are to be two separate pay scales for outer London and the South East "fringe".

Teachers' unions say the rises are inadequate - and a row is brewing over government moves to limit the numbers who get performance-related pay.

The rises would mean an experienced classroom teacher's pay would rise from �26,460 now to �27,123 next April and �28,005 from September 2005.

Head teachers' salaries, now in a range from �31,416 to �88,155, would be �33,249 to �93,297 by the end of 2005.

Management allowances are to be frozen and replaced with a new system a year early, from April 2004.

TEACHERS' PAY RISES England and Wales - main Now: �26,460 Apr 2004: �27,123 Apr 2005: �27,801 Sept 2005: �28,005 Inner London Now: �30,000 Apr 2004: �30,750 Apr 2005: �31,518 Sept 2005: �31,749 Outer London Now: �28,707 Apr 2004: �29,424 Apr 2005: �30,159 Sept 2005: �30,642 South East "fringe" areas Now: �27,330 Apr 2004: �28,014 Apr 2005: �28,806 Sept 2005: �28,923

The awards proposed by the Education Secretary, Charles Clarke, are based on recommendations from the independent pay review body.

Mr Clarke said they represented "a new era of stability and certainty in teachers' pay" based on fairness for teachers and affordability for schools.

He had asked for the longer timescale last year, to allow head teachers and education authorities to plan their budgets better - pay being the biggest element in schools' costs.

The review body did not go along with the idea then, but it was given added emphasis by the furore over school funding shortfalls this year.

The government has said already that schools in England will get at least 4% more next year. It based that figure on the presumption of the inflation-level pay settlement that has now been delivered.

Another aspect of the greater certainty for schools is that the pay deal is being announced now, rather than in January as usual.

'Freeze'

It will still be paid in April for the next two years, but from 2005 September will become the settlement date - coinciding with the start of the school year.

The government has ended the times when teachers were underpaid and undervalued and most teachers have a good standard of living Education Secretary, Charles Clarke

The biggest union, the National Union of Teachers (NUT), said the awards meant an increase for the 17 months to September 2006 of "around 3%".

Its general secretary, Doug McAvoy, said: "Today's announcement provides a bleak prospect for teachers. Again this government offers teachers less than the increases in average earnings."

He said the decision to freeze teachers' pay at inflation would increase the problems of recruitment and retention - forcing schools to use unqualified people to take classes.

Merit pay

But Mr Clarke said: "The government has ended the times when teachers were underpaid and undervalued and most teachers have a good standard of living."

Teachers have met the challenges set. Failure to meet their justifiable expectations could have a devastating impact on their morale and professional self-esteem Eamonn O'Kane, NASUWT union

There would also be a "safety net" provision whereby the review body can make further recommendations if inflation goes above 3.25% or below 1.75% over a 12-month period.

But there is trouble looming over the issue of so-called performance-related pay, with the government seeking to curb the cost of this.

It wants to limit the numbers moving up the higher pay scale to 30%d of those who are eligible.

Consultation with the unions is planned.

"I recognise that it will be difficult to find agreement but I am determined to succeed," Mr Clarke said.

Eamonn O'Kane of the NASUWT union said they would respond positively and constructively, but added: "The importance of this issue must not be underestimated.

"Teachers have met the challenges set. Failure to meet their justifiable expectations could have a devastating impact on their morale and professional self-esteem."