How do supply teaching agencies work?
In short
A supply agency sits between the school and the worker. It maintains a pool of available staff, matches them to bookings, and charges the school a fee on top of the worker’s pay. That fee is the agency’s income, and since 2026 it has been capped for schools buying through the government framework.The three parties
- The school needs cover, books it, and pays the agency a total charge.
- The agency recruits and vets workers, matches them to bookings, and handles the placement.
- The worker does the teaching or support work and is paid for the assignment.
The school’s total charge is made up of the worker’s pay plus the agency’s fee. Understanding that split is the key to reading anything about supply costs.
Fees are capped; pay is not set
The Supply Teachers and Education Recruitment framework caps the supplier fee – the agency’s margin – at a maximum daily amount that varies by role type. It does not cap, set or guarantee what a supply teacher is paid.
The most common misreading. A capped fee of £45 a day for a STEM teacher is not a £45 day rate for that teacher. It is the maximum the agency may add.
Temporary to permanent
A long placement sometimes leads to a permanent appointment. Agency terms usually set out what happens in that case, often through a transfer fee. Schools planning to recruit from their cover pool should check the terms before they start.