DfE launches new spending cap on use of supply teachers

The DfE has today launched its Maximising value for pupils programme (MVP) which is said will "tackle the systemic issues and support all schools and trusts to allocate resources smartly across 4 key pillars". As part of this initiative it is reported that there will be an expectation that schools will use the new government framework for supply teacher agency spending, which will include new caps on the rates companies can charge.

The MVP programme is hopefully a positive step towards addressing one of the biggest financial pressures in education: workforce costs. From an HR perspective, the introduction of negotiated rate caps for supply teacher agencies is particularly interesting. It should hopefully help schools redirect funds towards long-term workforce strategies rather than short-term fixes, but as always, our view is that schools and trusts should also take control of this themselves.

MVP's success will depend on more than just cost controls. Schools and trusts need the capacity and expertise to implement these frameworks effectively, and there’s a risk that focusing too heavily on savings could compromise employee experience, flexibility and quality in staffing. In our view, rate caps alone won’t solve underlying issues like teacher shortages or retention challenges.

We welcome the emphasis on retention and reducing turnover. High churn rates not only increase recruitment costs but also impact staff morale and student outcomes. Trusts should use this opportunity to review their workforce planning, invest in professional development, and ensure executive pay aligns with sector benchmarks. The CEO pay toolkit is something that some will feel is overdue.

Click here to read more about the MVP programme.