A new analysis by the Institute for Fiscal Studies (IFS) has highlighted a concerning trend in education funding across England, projecting that real-terms per-pupil spending in mainstream schools will return to 2010 levels by the 2025–26 academic year. This forecast suggests that a decade and a half of stagnant funding will have left schools no better off in real terms than they were at the beginning of the 2010s, despite some recent injections of capital.
The report acknowledges the significant funding uplift announced in the 2021 Spending Review, which was intended to reverse some of the cuts seen over the previous decade. However, the IFS warns that this boost is being rapidly eroded by high inflation and other rising costs faced by schools. These pressures include unfunded teacher pay rises, which place additional strain on already tight budgets, forcing schools to make difficult decisions about staffing levels and resource allocation.
Beyond mainstream schools, the report also draws attention to the persistent underfunding of other vital sectors within the education system. Funding for early years provision and further education colleges, for example, is projected to remain significantly below 2010 levels in real terms even by 2025–26. This disparity raises questions about the government's long-term strategy for a comprehensive and equitable education system across all age groups.
A particularly acute area of concern highlighted in the IFS analysis is the funding for special educational needs (SEN). Local authorities are grappling with escalating costs associated with providing SEN support, often diverting funds from other areas of their education budgets to meet statutory obligations. This growing financial burden on councils underscores a systemic issue in how SEN provision is funded and delivered across the country, impacting both the quality of support available and the financial stability of local government.
The Department for Education has consistently stated its commitment to ensuring schools are properly funded. However, the Labour Party, in response to such reports, often criticises the government's long-term record on education spending, arguing that years of underinvestment have left the system struggling to meet the needs of all pupils. The opposition frequently calls for a more sustainable and equitable funding model to address the challenges outlined by organisations like the IFS, particularly concerning teacher recruitment and retention, and support for vulnerable children.
The implications for UK citizens are broad, affecting the quality of education available to children and young people, the resources accessible to teachers, and the overall capacity of the education system to drive future economic growth and social mobility. The persistent real-terms stagnation in per-pupil funding could lead to larger class sizes, fewer resources, and a reduced breadth of curriculum offerings in schools across England.
Source: Institute for Fiscal Studies (IFS)