Why the Supply Teacher Pay System Feels Broken
After returning to daily conversations with schools and supply teachers, our founder, Simon Whitcombe, shared on LinkedIn how supply teacher pay rates in the daily/short‑term supply system feel more broken than ever. Many schools are paying high daily rates, agencies charge sizeable margins and yet supply teachers often take home far less. In London, teachers told us they were offered £150 a day, only to discover that the rate was an umbrella assignment rate. Once employer’s National Insurance, the Apprenticeship Levy and umbrella fees are deducted, their actual take‑home pay falls to around £125–£130 — not much more than what teachers earned a decade ago.
To make matters worse, some inner‑London schools pay as little as £185 per day, while schools in the rest of England pay £220–£230, with higher actual pay for teachers. This disparity isn’t fair to teachers or schools and highlights a system that prioritises margins over people.
How Umbrella Companies Can Erode Your Earnings
Umbrella payroll services act as a middle‑man between you and the agency. According to guidance from Moore Teachers, an umbrella company is a third‑party payroll service which charges a weekly or monthly fee, rolls holiday pay into your rate and deducts costs before tax, reducing your take‑home pay. Many teachers are attracted by seemingly higher assignment rates, but feel misled once fees and deductions are taken into account.
The Simplicity and Security of PAYE
In contrast, PAYE (Pay As You Earn) is the standard HMRC system. When teachers are paid PAYE:
- The agency pays them directly, so there is no third‑party payroll fee.
- Tax and National Insurance are automatically deducted with no hidden fees or confusing deductions.
- Teachers receive a clear payslip showing gross pay and statutory deductions.
The NASUWT emphasises that supply teachers should insist on being paid via PAYE and ask for a Key Information Document before accepting an assignment to understand the pay structure. Teachers should also check that any uplifted umbrella rate truly compensates for additional deductions.
Current Supply Teacher Pay Rates in London & England
Under the School Teachers’ Pay and Conditions Document (STPCD), a supply teacher’s daily rate is calculated by dividing the annual salary by 195 working days. In 2025/26 the main pay scale (M1) annual salary outside London is £37,870, which equates to around £194. Inner‑London salaries are higher because of living costs; NASUWT’s pay scale shows that M1 in inner London is £40,317 with a daily rate of £206.76. Unqualified teachers in inner London receive between £145.35 and £210.23 per day depending on their scale point.
Supply Teacher Pay Rates & Why Prebook Uses PAYE Only
At Prebook Recruitment, we believe supply teachers deserve fair pay and transparency. That’s why:
- All Prebook teachers are paid PAYE. You’re employed directly by us, so you don’t lose money to umbrella margins or employer’s NI.
- We work to a fair margin, not the inflated ones that some agencies charge. This keeps costs reasonable for schools without compromising teacher pay.
- We focus on candidate quality, matching excellent teachers to schools that value them. Better teachers lead to better outcomes, which benefits schools and students.
By choosing Prebook, you avoid the pitfalls of umbrella companies and ensure you receive a transparent, fair rate for your work. You also gain access to support, guidance and an agency committed to ethical recruitment.
Key Takeaways
- Beware of umbrella assignment rates. A quoted umbrella rate of £150 may result in only £120–£125 take‑home pay once employer costs and umbrella fees are deducted.
- Demand PAYE payment. PAYE ensures you’re paid directly, receive a clear payslip and avoid unexpected deductions. Always ask for a Key Information Document to understand your pay.
- Understand regional rates. Inner‑London supply teachers should expect around £206 per day on the M1 scale, while outside London the M1 daily rate is approximately £169. Anything significantly lower is unfair unless agreed for other reasons.
- Choose ethical agencies. Agencies like Prebook that prioritise fair pay and transparency help protect your earnings and ensure schools aren’t overcharged.
Join the Conversation
If you’re a supply teacher or school leader dealing with these issues, we want to hear from you. Share your experiences, ask questions and let’s advocate for fairer pay practices. Get in touch with Prebook Recruitment to work with an agency that values transparency and pays all teachers via PAYE.
Get in touch with us today: https://prebookrecruitment.com/contact/
View our current live vacancies: https://prebookrecruitment.com/jobs/
