Armstrong Watson joins forces with Tes to tackle growing payroll and pensions complexity in schools

Tes, the global technology company serving the education sector, and Armstrong Watson have announced a strategic partnership designed to strengthen payroll support for schools, academies and Multi-Academy Trusts in England.

The partnership introduces two new specialist payroll support services to Tes’ EduPay, which processes over 130,000 payslips a month, combining education-specific payroll software with Armstrong Watson’s specialist payroll, pensions and compliance expertise.

The partnership comes as changes to pension contributions put school payroll and budgets under renewed scrutiny. Average Local Government Pension Scheme (LGPS) employer contribution rates fell from 21.5% to 16.5% in April 2026, but individual employers’ rates vary, including within the same fund. Schools and trusts must apply the correct rates and understand what the changes mean for their own costs.

In England, LGPS savings are also being counted towards funding the 3.5% teacher pay award for 2026-27, although the savings available differ between schools. Meanwhile, the confirmed reduction in Teachers’ Pension Scheme (TPS) employer contributions from April 2027 will be accompanied by lower school funding, making it essential that finance leaders assess the impact on their own budgets.

The partnership builds on the two payroll services Tes already provides through EduPay: Payroll, which gives access to the EduPay software, and Payroll Plus, which adds technical and pensions support. Both remain available and continue to suit many schools and trusts. Tes and Armstrong Watson are now adding two further levels of service for organisations that want deeper specialist support: Payroll Advanced and Payroll Complete. These extend support through to specialist payroll and pensions expertise and fully managed payroll delivery, all built around the EduPay software customers already know and trust.

Until now, education organisations have largely had to carry the risk of getting payroll and pensions right themselves. Software applies the rates and rules it is given, but when a case is complicated or a rule changes, the call has often rested with one experienced person in the team.

The partnership combines Tes’ payroll technology with Armstrong Watson’s pensions and payroll expertise to help schools catch errors early and resolve discrepancies. However, accurate calculations are only part of the challenge. Schools also need expertise to interpret payroll and pension rules and check that staff are enrolled in the right scheme. Questions over TPS eligibility for trust chief executives and central staff illustrate the stakes: incorrect enrolment can put retirement benefits at risk and leave trusts facing liabilities.

“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,” said Neil Robinson, Chief Customer Officer at Tes. “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 & Head of Payroll, Armstrong Watson, added: “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.”

Recognising that schools and trusts have different internal resources and requirements, the partnership introduces two levels of support through Tes EduPay. Some teams have an experienced payroll lead who needs specialist advice on call. Others want to reduce their reliance on one person’s knowledge or hand over the monthly pay run entirely.

Payroll Advanced enables schools to retain control of payroll while accessing specialist expertise in complex calculations, pensions administration, compliance, validation and audit readiness, alongside legislative updates, year-end support and dedicated technical assistance. Payroll Complete provides a fully managed, end-to-end payroll service, including BACS processing and pensions administration, together with the specialist support available through Payroll Advanced. The choice allows schools to match support to the expertise and capacity they have, with a route to greater support as their needs change.

For more information about our Payroll for Education services, click here.