A new report by the Institute for Fiscal Studies (IFS) has revealed impending cuts to school funding next year. Costs will outpace funding for schools in 2025-26, a scenario that would force head teachers to make difficult choices over how to allocate money. Schools may be unable to afford the government’s proposed pay increase for teachers along with the necessary support for children with special educational needs. Nevertheless, the Department for Education (DfE) pledged its commitment to providing “fair funding” aimed at addressing the areas where it is most needed.
According to the IFS, while funding for schools is set to rise by 2.8% in 2025-26, there may be a rise of 3.6% in costs, plunging schools into tough times. Typically, most of a school budget goes towards staffing costs. With the government suggesting a 2.8% pay rise for teachers from September 2025, schools will be left with strikingly difficult decisions. Although school spending has increased during previous years, costs for supporting pupils with special educational needs and disabilities (Send) have also risen immensely.
A mother, Mrs Reader, mentioned that she hoped for more funding to support children. Her son, Thomas, in Year One, is waiting for an autism assessment. Since being declined an Education, Health and Care Plan (EHCP) last year, the school budget has been used to support Thomas. Head teacher Dan Crossman shared that the school is in an in-year deficit, spending more money than it has coming in. A choice has to be made between deciding whether to meet the children’s needs or balancing the budget.
Although schools have been able to source top-up funding by finding innovative ways to raise money, they still face tough times. Staff costs take up 85% of the budget, and head teachers such as Steve Hitchcock have expressed concerns over the pay rises proposed by the government. The Department for Education promised to increase funding for schools, including for children and young people with high needs, in the next financial year
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