Schools in England are once again facing tough times due to the provision of special educational needs, rising wages and soaring pension contributions, new analysis has warned.
The squeeze on school finances comes despite the Department for Education’s relative victory in the October budget, increasing core funding for schools by £2.3 billion in cash over 2025-2026.
But think tank Institute for Fiscal Studies said on Wednesday that despite the spending increase, school leaders grappling with cost pressures found budgets to be “extremely tight”, with little extra money going to students. I warned him that it would happen.
“On paper, the settlement appears relatively generous, but when you look inside, it’s not very good. It’s not a great deal, it’s not a good deal.” Because so much has been swallowed up by the world,” Luke Sibieta said. IFS researcher and co-author of the report.
The findings were announced on the same day that the Child Welfare and Schools Bill receives its second reading in Parliament. This law aims to improve child protection and educational standards.
National Education Union general secretary Daniel Kebede said the analysis proved spending on schools and universities was increasing © James Manning/PA
The IFS’ annual report on UK education spending has warned of mounting pressure on the Labor government, which is embarking on a review to determine Whitehall’s budget for the remainder of parliament.
Daniel Kebede, general secretary of the National Education Union, one of the UK’s largest teachers’ unions, said the analysis confirmed that spending on schools and universities was increasing.
“Keir Starmer was elected on a promise to put more resources into schools after 14 years of austerity. Schools do not have the capacity to save without cutting education provision.” he added.
The IFS found that of the £2.3bn increase, £1bn went towards special educational needs (SEN) costs. This would take the balance to £1.3 billion and increase funding per pupil in mainstream schools by 2.8% in cash terms from 2025 to 2026.
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“We estimate that education costs are likely to rise by around 3.6%, including the impact of the government’s proposals to increase wages by 2.8%. If these projections are correct, core school budgets will It will be very tight in 2025-26,” the report added.
The findings highlight the growing challenge of tackling the soaring costs of SEN systems, which the National Audit Office last year warned were financially “unsustainable”.
The spending watchdog has found that the number of children legally entitled to additional support for SEN has more than doubled since 2015, when there were 240,000.
The NAO estimates that local councils will face a £3.4 billion ‘funding gap’ by 2027-28 as a result of increased demand.
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The IFS said the government was likely to be “under significant pressure” to increase spending to meet SEN demands, and that reforms would cost “probably billions, not hundreds of millions”.
The rise in SEN bills also comes as a result of a 2% decline in the number of school-age children in England between 2025 and 2027, due to a ‘population surge’ caused by the UK’s historic surge in It ate up £1.2bn of savings. Birth rates have passed through the system.
The changes put new pressure on sixth forms and universities, which were absorbing more students at a time when budgets were still more than 10 per cent below 2010 levels in real terms.
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David Hughes, chief executive of the Association of Universities, said “expecting universities to do more with the same funding” was not sustainable and would reduce the support available. .
“In turn, this will put a brake on economic growth, hinder opportunities and undermine the government’s efforts to deliver on its Five Missions,” he added.
The Department of Education is “determined to repair the foundations of our education system” and is working with schools and local authorities to “develop fair education that directs public funds where they are needed to support children’s academic progress.” We will secure a funding system.” “Thrive”.
