Schools will be given new powers to help them recruit and retain the best talent for teacher jobs by allowing them to pay more for better-performing members of staff.
The School Teachers' Review Body (STRB) has recommended to the government that teachers' pay should be linked more closely to their performance, with schools requiring greater freedom when it comes to setting teacher pay.
In its report, the independent review body called for a more flexible national pay framework, based on international evidence as well as views from employers, teachers and unions.
It called for ending the practice of basing pay increases on 'time served', which creates a scenario whereby nearly all full-time classroom teachers progress up the pay scale based on how long they have been in service.
Instead, teachers should have their pay progression linked to their annual appraisals, something which is already being done for some of those on higher pay scales. The STRB also called for higher pay bands to be kept for London and fringe areas.
Dame Patricia Hodgson, chair of the body, said that the government intends to accept the key recommendations outlined, although this will depend on the findings of a statutory consultation.
"We believe our recommendations will help schools to recruit, retain and reward the best teachers," she said. "It will give heads freedom to manage teachers' pay according to pupil needs and local circumstances within a fair national framework."
Chancellor George Osborne has already outlined plans for a one per cent increase in public sector pay, with the statutory minimum and maximum levels for classroom teachers' pay set to be uprated by one per cent in both 2013-14 and 2014-15.
However, under the STRB's proposed changes, schools will be able to determine how much to increase pay for their teachers within these statutory boundaries.
Education secretary Michael Gove said: "These recommendations will make teaching a more attractive career and a more rewarding job. They will give schools greater flexibility to respond to specific conditions and reward their best teachers.
"It is vital that teachers can be paid more without having to leave the classroom. This will be particularly important to schools in the most disadvantaged areas as it will empower them to attract and recruit the best teachers."
Posted by Harriet McGowan