There remain major concerns related to school funding in England, particularly in the context of ongoing economic pressures and structural vulnerabilities often linked to the most disadvantaged. These concerns stem from various factors, including inflation, rising operational costs, and political priorities related to government spending. Here are some of the key issues being raised by our members.
- Insufficiency
Bluntly, many schools remain underfunded, particularly in the face of rising costs. Much of the evidence points to the fact that funding increases have not kept pace with inflation or the increasing demands on schools. Many schools report that their budgets are being stretched to the limit, making it difficult to meet the needs of students and even maintain basic provision.
- Impact of inflation
Rising inflation has dramatically increased costs for schools, especially for items such as energy, staff salaries, and educational materials. With many schools at best only enjoying flat-cash increases, they are finding it harder to make ends meet as the cost of living and other cost pressures continue to increase. This has led to many leaders warning that they will not be able to maintain standards or even remain financially sustainable without further funding.
- Teacher and education leader incentives, recruitment and retention
Education workforce pay has been the subject of debate and disquiet for quite some time, but many in education feel that workload and accountability and pay are completely out of kilter. Many have now left the profession due to burnout or dissatisfaction with pay and workload, and the recruitment and retention crisis shows no sign of easing. The underfunding of schools is seen as a key factor in this issue, as schools struggle to sustainably offer competitive and attractive rewards and incentives. School business professionals in particular feel that the role is not properly valued.
- Disparities in funding
There remains deep concern about the disparity in funding between different schools, particularly between those in more affluent areas and those in deprived or rural areas. Critics argue that the current funding formula does not adequately address the needs of disadvantaged students or contextual or area-based factors, further exacerbating educational inequality and limiting opportunities for many students across our system
- Cuts to support services
The NHS, many local authorities and in turn schools have been forced to cut back on essential support services, including health and social care, special educational needs and disabilities (SEND) support, health and safety, and key administrative functions. These cuts are seen as having a detrimental effect on student wellbeing and academic outcomes, particularly for those who require additional support. This also adds additional pressure and an expectation that schools themselves will occupy the void.
- School maintenance and infrastructure
The condition of school buildings and facilities has been a long-standing issue. With limited funding, many schools struggle to maintain or upgrade their infrastructure, leading to concerns about health and safety. Poor conditions, such as RAAC, asbestos, leaking roofs, outdated classrooms, and inadequate technology, can negatively impact the learning environment. The school estate is crumbling before our eyes.
- The strain on school leaders
School leaders (all types) are under increasing pressure to manage the financial challenges whilst dealing with increasingly complex demands related to disadvantage, poverty, mental health and wellbeing. Many report feeling overwhelmed as they have to make tough decisions about restructuring, reducing extracurricular activities, or even increasing class sizes. The complexity of balancing budgets, adhering to government policies, and maintaining educational standards has created an unsustainable and toxic environment for many school leaders.
- Long-term sustainability of the system
There are concerns about the long-term sustainability of the education system if funding does not improve. Without adequate investment, there is fear that the quality of education will decline, particularly in schools that are already facing significant challenges. This could affect not just individual students but also the wider economy. A well-educated society is essential for economic growth and social mobility. The opposite is also true: a failure to educate the next generation will lead to economic decline and more poverty.
- Special educational needs and disabilities (SEND)
SEND demand has grown from 17.3% to 18.4% – an increase of over 100,000 children. Local authority deficits are now so bad that almost all new funding allocations are being swallowed up to resolve local authority structural deficits. Whilst the Government has pledged to address the SEND crisis and reform the procurement approach, the promise lacks detail and a clear plan. Integrating provision by promoting inclusion will take time and money. Settings will need to be reconfigured, specialists will need to be recruited, and staff will need to be trained.
- Accountability and performance expectations
Schools are also under pressure to meet performance targets and Ofsted expectations while facing budget constraints. Many argue that these expectations are unrealistic given the financial limitations schools face and that the focus should shift from performance-based assessments to ensuring that schools are adequately funded and supported.
If the Government cannot adequately fund the system, it cannot expect the same high standards.
References
- Institute for Fiscal Studies: Annual report on education spending in England: 2024–25
- Institute for Fiscal Studies: Education in the 2025 Spending Review: impossible choices?
- Schools Week: Most schools face making cuts next year, unions warn
- Schools Week: ‘We can’t go on like this’: Costs will outstrip school funding rises (again), says IFS
- Tes: Most school budgets will fall short in 2025-26, unions find
- Confederation of School Trusts: National School Trust Survey Report 2024
- National Governance Association: School and Trust Annual Governance Survey 2024
- National Association for Special Educational Needs: New data shows increase in SEND to 18.4%
ISBL Team
ISBL is uniquely dedicated to supporting every version of the school business profession operating across our school system
