Schools in England are bracing for tighter budgets due to rising costs of Special Educational Needs (SEN) provision, higher wages, and pension contributions, despite a promised funding boost. A recent report from the Institute for Fiscal Studies (IFS), cited by the Financial Times, highlights the challenges schools face in balancing their budgets.
While the October Budget announced a £2.3bn cash increase in school funding for 2025-26, the IFS warns that much of this will be absorbed by growing expenses.
Of the £2.3bn increase, £1bn is allocated for SEN needs, leaving mainstream schools with a 2.8% funding rise per pupil. However, school costs are expected to rise by 3.6%, driven partly by a 2.8% proposed pay increase for staff. This imbalance leaves schools facing significant financial strain.
The SEN system is a particular challenge. The number of children entitled to SEN support has more than doubled since 2015, now exceeding 480,000, according to the National Audit Office (NAO). Local councils are projected to face a £3.4bn funding gap by 2027-28 as they struggle to meet growing demand.
The findings come as the government reviews spending plans for the remainder of the parliament, with growing calls for additional investment in education.
Callum Thompson, BEC, said: “There are a range of factors pulling on the purse strings of Trusts and schools. Building repairs, the latest technology, heat and power and other overheads will all put pressure on schools, and SEN investment must not be ignored.
“We’re working harder than ever to better understand the challenges facing the education sector to try to claw back money mis-sold by energy brokers that they can ill afford to be without. By winning cases against unscrupulous energy firms and rogue brokers we can help to ease some of the short-term financial pressures.”