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Teachers' pay to be deregulated
Teachers' pay will be linked to their performance in the classroom under plans announced by Chancellor George Osborne.
From next September, school staff will no longer receive automatic pay rises each year.
Instead schools will be allowed to decide on salary levels for teachers, who will get annual appraisals.
But there will still be a minimum and maximum level that a classroom teacher can be paid.
The proposals are effectively an almost complete deregulation of teachers' pay, and a move away from national pay structures.
The plans, revealed by Mr Osborne in his Autumn Statement, have been put forward by the School Teachers Review Body (STRB).
In his speech, Mr Osborne said: "The STRB does recommend much greater freedom to individual schools to set pay in line with performance.
"And my right honourable friend the Education Secretary will set out how this will be implemented."
The proposals cover pay for classroom teachers in England and Wales, and do not include school leaders such as headteachers and deputy or assistant heads.
Teaching unions have previously vowed to campaign against any attempt to remove national pay structures, arguing that such a move would cut teachers' salaries and leave some schools, especially those in deprived areas, struggling to recruit top staff.