UK sets out teacher pay hikes that should outpace inflation

LONDON, July 1 (Reuters) - British teachers will receive pay increases that should outpace inflation over the coming two years, with the first rise coming in September, the government said on Wednesday.

Teachers' pay will increase by 3.5% from September, and by 3% from September 2027, representing a cumulative 17% rise since the country's Labour government took power in 2024.

• The increases are above the most recent rate of inflation which stood at 2.8% in May. Last month the Bank of England said inflation could be under the 3% mark in September

• Britain will provide £1.8 billion ($2.4 billion) to schools over two years to support pay rises, with schools expected to provide the first 1% of each pay award

• Additional £485 million to be given to colleges and other further education providers over next two years to use towards recruiting and retaining staff, and courses

• Curbs will be placed on academy trust executive pay

($1 = 0.7553 pounds)

(Reporting by Suban Abdulla; editing by Andy Bruce)