Teachers' pay will remain capped at 1%, the Department for Education has announced, as the Government sticks to public sector wage restraint.
The Government has accepted the recommendation of the School Teachers' Review Body (STRB), which said there should be a 1% increase for all pay ranges.
Teachers' pay has been frozen since 2010, and the latest announcement means another real-terms pay cut for more than half a million teachers in England and Wales.
Prime Minister Theresa May and Chancellor Philip Hammond have been under pressure to lift the pay cap, including from a number of Government ministers, after the party lost its majority in the General Election to anti-austerity Labour, which has pledged to scrap the 1% ceiling.
Monday's move is likely to be seen as a sign that the Government intends to stick to its plans to keep a tight hold on the strings of the public purse.
In a written statement, Education Secretary Justine Greening said the STRB's recommendations, due to be introduced in September, "are consistent with the Government's 1% public sector pay policy".
"Following previous reforms, schools already have significant flexibility, within the pay ranges, to set pay for individual teachers, taking account of performance and retention," she said.
The Government has accepted a recommendation that teachers on the minimum of the main pay scale get an increase of up to 2%. These are typically teachers in the first few years of their career. There was a similar recommendation two years ago.
A DfE spokeswoman said: "We recognise and value the hard work of teachers which is why we have accepted the pay deal proposed by the independent STRB, in line with the 1% public sector pay policy.
"This will ensure we continue to strike the balance between being fair to public sector workers and fair to taxpayers."
The STRB is one of a number of independent bodies that put forward recommendations for wage increases, which are then accepted or rejected by Government departments.
In recent years, these recommendations have been affected by a Government cap on public sector pay as part of austerity measures.
After the 2010 general election, there was a two-year pay freeze with school staff receiving a zero increase in 2011 and 2012. Since then, there has been a cap of 1%.
The National Union of Teachers (NUT) has calculated that teachers' wage increases fell behind RPI inflation by 13% between 2010 and 2016.
Last week, Mrs May poured cold water on calls to end pay restraint, telling MPs at Prime Ministers' Questions that upcoming recommendations from review bodies - including the STRB - would be "very carefully considered".
But she also left little doubt her position chimes with that of Mr Hammond, who has warned a relaxation of pay restraint would require extra borrowing or tax rises to avoid increasing the deficit.
''Our policy on public sector pay has always recognised that we need to be fair to public sector workers, to protect jobs in the public sector and to be fair to those who pay for it,'' Mrs May told the Commons.
''That is the balance that we need to strike and we continue to assess that balance.''
Labour leader Jeremy Corbyn accused her of ''recklessly exploiting the goodwill of public servants'' by continuing with a policy which delivers a real-terms pay cut to millions of workers at a time when inflation is running at 2.9%.
Health Secretary Jeremy Hunt said he had ''a great deal of sympathy'' for nurses' demands for higher rises, while sources said Foreign Secretary Boris Johnson privately backs a wage boost for public sector staff.
Mr Johnson later stressed the need to be ''fiscally sensible and responsible'' on public sector pay, acknowledging it was ''important that you manage your economy sensibly'' and do not have a spending ''splurge''.
Environment Secretary Michael Gove has insisted the Government must ''listen'' to the pay review bodies, while Defence Secretary Sir Michael Fallon said pay rates were ''obviously something we have to consider, not just for the Army but right across the public sector as a whole''.
Transport Secretary Chris Grayling has acknowledged there were splits around the Cabinet table about the approach to the pay cap.
The move is likely to spark fresh concerns about teacher shortages.
Russell Hobby, general secretary of the National Association of Head Teachers (NAHT), said: "For many teachers, this marks the seventh successive real-terms cut in their pay.
"We will not be able to attract the best and brightest to teaching if we constantly cut their pay."