The £1.25 Billion Question: Why Schools Must Rethink Supply Staffing – and Switch to Schools Mutual Services
In the damning exposé published by The Times on October 26, 2025, the National Education Union (NEU) revealed that schools in England have spent a staggering £1.25 billion on supply teaching, with over 80% of that funnelled into private recruitment agencies. The report, based on Department for Education (DfE) data and interviews with teachers, leaders, and agency representatives, paints a troubling picture of a system where profit margins soar while teacher pay stagnates, and where schools are left footing the bill.
At Schools Mutual Services, we vehemently believe this model is broken. And we’re here to offer a better way, which is cost effective, supports the outcomes of schools and teaching staff, and lead by schools like yours.
The Reality: High Costs, Low Pay, and Market Capture
According to the NEU’s findings:
- 93% of schools now rely on commercial agencies for supply staffing, a market dominated by a dozen large agencies.
- Despite schools paying £200+ per day, many supply teachers take home as little as £110.
- Markups often exceed 90%, with agencies pocketing the difference.
- Eight of the firms that dominate the sector saw their combined turnover rise 30% over three years, from £355.9M to £461.8M.
- Their gross profits surged 55%, from £75.5M to £117.3M.
This isn’t just inflation, it’s industrial-scale extraction of public funds from the education system.
Hidden Fees and Systemic Barriers
The report also highlights:
- Finder’s fees running into thousands, which deter schools from offering permanent roles.
- Unqualified staff increasingly used to cover absences, compromising educational quality.
- Supply teachers excluded from institutional pension schemes, with limited access to CPD or career progression.
Daniel Kebede, NEU General Secretary, called it “profiteering from the crisis in schools,” urging the government to enforce national pay rates and establish a national supply register.
Industry Defends Its Position – But Is It Enough?
In response to the NEU’s scathing report on supply staffing costs, industry leaders have pushed back, defending the role of private agencies and challenging the narrative of exploitation.
Neil Carberry, Chief Executive of the Recruitment and Employment Confederation (REC), which represents eight of the agencies named in the report, argued that schools need “realistic solutions to entrenched teacher shortages” rather than “simplistic criticism of agencies.” He urged the NEU to consider who sets pay and why teachers opt for agency work, warning that cutting rates could backfire by driving supply teachers toward better offers elsewhere.
Carberry also pointed to historical lessons, claiming that local authorities were once tasked with managing supply staffing, but were found to be “more expensive and less responsive.” His comments suggest that agencies offer a level of agility and scale that public systems have struggled to match.
Meanwhile, one of the recruitment agencies that earns top profits from schools firmly rejected claims of exploitation, stating that its mission is “to keep experienced teachers in classrooms, not out of them.” This agency emphasised that most supply teachers value the flexibility agency work provides, allowing them to balance professional and personal commitments, and called for constructive dialogue to strengthen the system, while maintaining teacher choice and autonomy.
Industry representatives also suggested that operational costs contribute to high fees:
- Pensions and national insurance contributions
- Safeguarding checks and DBS certification
- Training and compliance
- Rapid deployment of qualified staff during emergencies
These may be legitimate expenses, but they don’t explain why markups often exceed 90%, or why supply teachers are routinely paid less than 60% of what schools spend.
The NEU’s Daniel Kebede remains unconvinced. He argues that “exceptional sums of public money are flowing towards agencies that charge schools huge fees,” while supply teachers suffer from low pay and lack of pension access. He calls for national pay rates and a central supply register to restore fairness and stability.
The Department for Education (DfE) has responded by pointing to its agency supply deal, designed to help schools secure better value – but uptake remains uneven, and many schools still face steep costs and restrictive contracts.
The full Times article can be viewed here.
As many schools return for the remainder of the Autumn term this week, the pressure to find reliable, affordable cover will only intensify. The question is no longer whether the current model is flawed, but how quickly schools can pivot to something better.
That’s where Schools Mutual Services comes in. We offer a sector-led, ethical alternative that delivers:
- Fair pay for teachers
- No finder’s fees for temp to perm roles
- Transparent pricing
- Rapid, compliant, qualified and experienced supply staff
- Governance shaped by educators, not shareholders
The Alternative: Schools Mutual Services
Schools Mutual Services exists to challenge this broken model – and to restore fairness, transparency, and value to supply staffing.
Here’s how we’re different:
- Fair Pay, No Exploitation
We ensure supply teachers receive transparent, equitable rates, with no hidden deductions. What schools pay goes directly to the professionals delivering the lesson -not to shareholders.
- No Markups, No Middlemen
Our mutual model eliminates excessive agency fees. Schools benefit from cost-effective staffing, and funds stay within the education system.
- No Finder’s Fees or Lock-In Contracts
We support open pathways to permanent employment, helping schools retain great staff without financial penalties.
- Rapid, Compliant Staffing
We provide DBS-checked, qualified professionals with fast turnaround – without compromising on safeguarding or quality.
- Sector-Led Governance
We’re built by school, for schools. Our approach is shaped by school leaders, not shareholders, ensuring alignment with sector values and priorities.
💬 What the Sector Is Saying
While some industry voices argue that agency costs cover compliance, pensions, and flexibility, the NEU counters that these services are being delivered at unsustainable margins, with teachers and schools bearing the brunt.
One of the named agencies, defending its model by citing underfunding and retention challenges misses the point. The issue isn’t whether supply work is public or private. It’s whether it’s fair, transparent, and sustainable.
🔄 Time to Switch
Schools Mutual Services offers a ready-made solution to the problems outlined in the NEU report. We’re not just a provider, we’re a partner in progress.
By switching to Schools Mutual Services, schools can:
- Save money without compromising quality.
- Support teacher wellbeing and retention.
- Keep investments in the education sector, not agency profits.
- Align with ethical recruitment standards and sector values.
📣 Join the Movement
If your school is ready to rethink supply staffing, we’re here to help. Let’s build a system that works – for teachers, for schools, and for the future of education.
Schools Mutual Services (SMS) is a not-for-profit supply staffing agency owned and managed by schools, designed to offer ethical, transparent, and cost-effective staffing solutions across the education sector. Unlike commercial agencies, SMS invests in the education system, helping schools protect their budgets while ensuring fair pay and professional development for supply educators. SMS provides school-ready staff who are supported with real CPD and aligned to national pay scales.
With regional hubs covering the whole of the North East, East Midlands and the South East, SMS works with executive leaders in schools and academies across Newcastle, Durham, Gateshead, Sunderland, Northumberland, South Shields, Nottinghamshire, Derbyshire, Leicester, Oxfordshire, Swindon and Berkshire.
Each hub is embedded within its local education community, working in partnership with schools, academies, multi-academy trusts and teaching alliances such as OTSA, to deliver tailored supply staffing support across primary and secondary education, whether that is day-to-day supply teaching or long-term placements.
From multi academy trusts to community primary and special schools, SMS is helping educational establishments navigate financial pressures with a smarter, more cost-effective and sustainable solution for supply teachers and supply support staff, that puts pupil outcomes first.
With SMS, you’re not just filling a short-term supply need, you’re investing in a smarter, more sustainable future for your school.
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If you have any supply staffing requirements or would like to discuss any information in this article further, you can contact us here ➡️CONTACT FORM
North East Hub
Portland House, Newcastle, NE1 8ALhttps://schoolsmutualservices.co.uk/contact-us/?utm_source=organic&utm_medium=blog&utm_campaign=SMS_NEU-Times_041125
📞 0191 933 8300
✉️ info@schoolsmutualservices.co.uk
South East Hub
Podium Sandford Gate, Littlemore, Oxford OX4 6LB
📞 01865 597 771
✉️ oxford@schoolsmutualservices.co.uk
East Midlands Hub
16 Commerce Square, Nottingham NG1 1HS
📞 0115 646 6460
✉️ nottingham@schoolsmutualservices.co.uk