State schools in England are facing significant funding challenges that could lead to school closures, larger class sizes, and reductions in after-school programs. This warning comes in light of a recent announcement by Chancellor of the Exchequer, Rachel Reeves, regarding a major overhaul of funding for special educational needs and disabilities (SEND) provisions.
Starting from the fiscal year 2028/29, the costs associated with SEND will be absorbed into the existing budget of the Department for Education (DfE), rather than funded by local authorities. This shift raises concerns about how the Government will manage the estimated £6 billion cost without impacting the education budget for state schools.
The Office for Budget Responsibility (OBR) has expressed concerns, stating that “no savings have been identified” to offset the financial pressure that the DfE will face. If SEND provision is fully funded within the department’s core budget of £69 billion, it would imply a decrease of 1.7 percent in per-pupil spending in mainstream schools, contrasting sharply with the planned 2.4 percent increase.
This potential decline in funding has raised alarms among education leaders, with unions describing the consequences as “catastrophic.” The National Education Union (NEU) is considering a ballot for strike action in response to the looming cuts, which could severely impact educational provisions.
“Reducing per-pupil funding would have a catastrophic impact on educational provision,” warned Julia Harnden, deputy policy director at the Association of School and College Leaders (ASCL). She pointed out that even if the overall school funding keeps pace with inflation, rising costs associated with SEND, decreasing pupil numbers, and escalating staff expenses would force many schools to make substantial cuts in the coming years.
Harnden added that if funding rates were to fall in real terms, the ramifications would be dire, potentially leading to the closure of smaller primary schools and significantly larger class sizes, as well as deeper cuts to both curricular and extracurricular programs.
The recent budget announcement also suggests imminent changes to the SEND system, including how children receive additional support and who qualifies for statutory assistance. Parents are concerned that these reforms could jeopardize access to essential support through Education, Health and Care Plans (EHCPs).
Currently, SEND is financed through the dedicated schools grant (DSG), which is divided between funding mainstream schools and local authority resources for high needs. Over the years, local authorities have faced increasing budgetary pressures, particularly due to the rising number of children with EHCPs.
In 2020, the Government allowed local authorities to disregard SEND deficits, a measure that has since been extended twice and is set to expire in 2028. By then, cumulative deficits are projected to reach £14 billion. The new budget framework indicates that while local authorities will no longer accumulate SEND deficits, they must still recognize historical deficits once the statutory override is lifted, potentially leading many to file for bankruptcy.
In addition to the funding shake-up, Reeves announced financial support for secondary school libraries and plans to improve playground facilities. However, education unions criticized the Chancellor’s fiscal statement for failing to address the critical need for increased funding to school budgets, which they claim are already “running on empty.”
The NEU has firmly stated that it will not accept the ongoing underfunding of schools, with Daniel Kebede, general secretary of the NEU, emphasizing the need to convince the Government to change course, even if it requires strike action. “We must – and we will – save our schools,” Kebede declared.
Furthermore, Paul Whiteman, general secretary at the NAHT, noted that the budget did not focus on public spending, leaving many school leaders contemplating difficult decisions regarding cuts to staff and resources.
As the situation unfolds, the educational landscape in England may face significant challenges unless urgent clarity and support from the Government are provided.
