[England] Tes partners with Armstrong Watson to expand EduPay

In England, Tes has announced a partnership with Armstrong Watson to expand its EduPay payroll service for schools in England, adding two new service tiers to its platform, which processes more than 130,000 payslips monthly, IT Brief reports.

The introduction of Payroll Advanced and Payroll Complete will extend support for schools, academies and Multi-Academy Trusts that use EduPay for payroll administration. According to the partners, the new options give organisations a choice between specialist support for internal teams and a fully managed payroll and pensions service.

The expansion comes amid changes to pension contribution rates and their effect on budgets, impacting school finance and payroll teams. Average Local Government Pension Scheme employer contribution rates reportedly fell from 21.5 per cent to 16.5 per cent in April 2026, but rates still vary by employer, including within the same fund.

This variation demands that schools and trusts apply the correct rates to staff and assess what the changes mean for their own costs. Local Government Pension Scheme savings are being counted towards funding the 3.5 per cent teacher pay award for 2026-27 in England, though the level of savings differs between institutions.

In addition, schools are preparing for further changes to the Teachers' Pension Scheme. Employer contribution rates are due to fall from April 2027, but the reduction will reportedly be accompanied by lower school funding, adding another layer to budget planning for finance leaders.

Tes currently offers two payroll services through EduPay. Payroll provides access to the software, while Payroll Plus adds technical and pensions support. The new tiers will sit above those products. 

According to Tes, Payroll Advanced is designed for schools that want to retain control of payroll processing while drawing on specialist support for complex calculations, pensions administration, compliance, validation, audit readiness, legislative updates, year-end work and technical assistance.

Payroll Complete offers a fully managed service covering end-to-end payroll, BACS processing and pensions administration, alongside the support included in Payroll Advanced. It is for schools with differing internal resources, from teams with experienced payroll staff to those seeking to reduce reliance on a single specialist or outsource the monthly pay run entirely.

The companies say the arrangement combines Tes software with Armstrong Watson's payroll and pensions expertise. It helps schools address errors and discrepancies when rules change, or payroll scenarios grow more complex.

Pensions enrolment is a key area of risk for schools and trusts. Questions over Teachers' Pension Scheme eligibility for trust chief executives and central staff have reportedly highlighted the potential consequences of incorrect enrolment, including possible effects on retirement benefits and employer liabilities.

Payroll administration in education has distinct differences from other sectors: varied pay scales, term-time-only contracts, and the need to manage both Teachers' Pension Scheme and Local Government Pension Scheme requirements. These factors have increased demand for specialist support as rules and contribution levels change.

Neil Robinson - Chief Revenue Officer at Tes - stated that schools had been asking for more support than software alone can provide.

"Schools and trusts tell us they need more than payroll software. They need people they can turn to when a payroll or pension query gets complicated, extra support when their team is stretched, and help making sure staff records are right," he said.

Mr Robinson added, "We built this partnership with Armstrong Watson in response to those conversations, giving EduPay customers access to specialist support or a fully managed service, depending on where they need the help."

Karen Thomson - Partner and Head of Payroll at Armstrong Watson - said, "Payroll in the education sector is uniquely complex, driven by varied pay scales, term-time-only contracts, and the administrative intensity of TPS and LGPS. 

“Our goal is to help schools and trusts reduce risk, strengthen compliance and gain greater confidence in payroll delivery. Whether customers need specialist payroll and pensions expertise or a fully managed outsourced service, this partnership provides a solution that matches their needs."

Tes reportedly stated that EduPay is built specifically for education payroll, and that the service expansion reflects demand from schools and trusts for more specialist support around payroll, pensions and compliance.

Source: IT Brief

(Quotes via original reporting)

In England, Tes has announced a partnership with Armstrong Watson to expand its EduPay payroll service for schools in England, adding two new service tiers to its platform, which processes more than 130,000 payslips monthly, IT Brief reports.

The introduction of Payroll Advanced and Payroll Complete will extend support for schools, academies and Multi-Academy Trusts that use EduPay for payroll administration. According to the partners, the new options give organisations a choice between specialist support for internal teams and a fully managed payroll and pensions service.

The expansion comes amid changes to pension contribution rates and their effect on budgets, impacting school finance and payroll teams. Average Local Government Pension Scheme employer contribution rates reportedly fell from 21.5 per cent to 16.5 per cent in April 2026, but rates still vary by employer, including within the same fund.

This variation demands that schools and trusts apply the correct rates to staff and assess what the changes mean for their own costs. Local Government Pension Scheme savings are being counted towards funding the 3.5 per cent teacher pay award for 2026-27 in England, though the level of savings differs between institutions.

In addition, schools are preparing for further changes to the Teachers' Pension Scheme. Employer contribution rates are due to fall from April 2027, but the reduction will reportedly be accompanied by lower school funding, adding another layer to budget planning for finance leaders.

Tes currently offers two payroll services through EduPay. Payroll provides access to the software, while Payroll Plus adds technical and pensions support. The new tiers will sit above those products. 

According to Tes, Payroll Advanced is designed for schools that want to retain control of payroll processing while drawing on specialist support for complex calculations, pensions administration, compliance, validation, audit readiness, legislative updates, year-end work and technical assistance.

Payroll Complete offers a fully managed service covering end-to-end payroll, BACS processing and pensions administration, alongside the support included in Payroll Advanced. It is for schools with differing internal resources, from teams with experienced payroll staff to those seeking to reduce reliance on a single specialist or outsource the monthly pay run entirely.

The companies say the arrangement combines Tes software with Armstrong Watson's payroll and pensions expertise. It helps schools address errors and discrepancies when rules change, or payroll scenarios grow more complex.

Pensions enrolment is a key area of risk for schools and trusts. Questions over Teachers' Pension Scheme eligibility for trust chief executives and central staff have reportedly highlighted the potential consequences of incorrect enrolment, including possible effects on retirement benefits and employer liabilities.

Payroll administration in education has distinct differences from other sectors: varied pay scales, term-time-only contracts, and the need to manage both Teachers' Pension Scheme and Local Government Pension Scheme requirements. These factors have increased demand for specialist support as rules and contribution levels change.

Neil Robinson - Chief Revenue Officer at Tes - stated that schools had been asking for more support than software alone can provide.

"Schools and trusts tell us they need more than payroll software. They need people they can turn to when a payroll or pension query gets complicated, extra support when their team is stretched, and help making sure staff records are right," he said.

Mr Robinson added, "We built this partnership with Armstrong Watson in response to those conversations, giving EduPay customers access to specialist support or a fully managed service, depending on where they need the help."

Karen Thomson - Partner and Head of Payroll at Armstrong Watson - said, "Payroll in the education sector is uniquely complex, driven by varied pay scales, term-time-only contracts, and the administrative intensity of TPS and LGPS. 

“Our goal is to help schools and trusts reduce risk, strengthen compliance and gain greater confidence in payroll delivery. Whether customers need specialist payroll and pensions expertise or a fully managed outsourced service, this partnership provides a solution that matches their needs."

Tes reportedly stated that EduPay is built specifically for education payroll, and that the service expansion reflects demand from schools and trusts for more specialist support around payroll, pensions and compliance.

Source: IT Brief

(Quotes via original reporting)