{"id":230801,"date":"2025-06-11T15:08:54","date_gmt":"2025-06-11T14:08:54","guid":{"rendered":"https:\/\/schoolsweek.co.uk\/?p=230801"},"modified":"2025-06-12T17:33:50","modified_gmt":"2025-06-12T16:33:50","slug":"spending-review-2025-whats-in-it-for-schools","status":"publish","type":"post","link":"https:\/\/schoolsweek.co.uk\/spending-review-2025-whats-in-it-for-schools\/","title":{"rendered":"Spending review 2025: What&#8217;s in it for schools?"},"content":{"rendered":"\n<p>The chancellor has set out government spending plans for the next three years, boosting the schools budget, extending the rebuilding programme and increasing Ofsted&#8217;s funding.<\/p>\n\n\n\n<p>But the school funding increase will only amount to a roughly 1 per cent average real-terms increase to per-pupil funding each year (<a href=\"https:\/\/schoolsweek.co.uk\/school-funding-to-rise-by-around-1-per-pupil-each-year\/\" title=\"\">read our news story on that here<\/a>).<\/p>\n\n\n\n<p>It also has to cover cash for SEND reforms, the free school meals expansion and next year\u2019s pay award.<\/p>\n\n\n\n<p>Here&#8217;s what you need to know.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. \u00a34.7bn for schools, but just 1% per-pupil funding rise<\/h3>\n\n\n\n<figure class=\"wp-block-embed alignright is-type-wp-embed is-provider-schools-week wp-block-embed-schools-week\"><div class=\"wp-block-embed__wrapper\">\n<span class=\"dQMRu4OIkwU2y9H7gYqPpJi0rKGAEczB\"><blockquote class=\"wp-embedded-content\" data-secret=\"zim5XlDGvR\"><a href=\"https:\/\/schoolsweek.co.uk\/school-funding-to-rise-by-around-1-per-pupil-each-year\/\">School funding to rise by around 1% per pupil each year<\/a><\/blockquote><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;School funding to rise by around 1% per pupil each year&#8221; &#8212; Schools Week\" src=\"https:\/\/schoolsweek.co.uk\/school-funding-to-rise-by-around-1-per-pupil-each-year\/embed\/#?secret=GcBEDplJDt#?secret=zim5XlDGvR\" data-secret=\"zim5XlDGvR\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/span>\n<\/div><\/figure>\n\n\n\n<p>Documents confirm the core schools budget will increase from \u00a364.8 billion this year to \u00a369.5 billion in 2028, a cash-terms increase of \u00a34.7 billion by the end of the spending review period.<\/p>\n\n\n\n<p>However, this includes the \u00a3410 million annual cost of the recently announced extension of free school meals, and the \u00a3615 million allocated earlier in the spring to contribute to next year\u2019s 4 per cent teacher pay rise.<\/p>\n\n\n\n<p>Some of it will also go towards SEND reforms (see point 2 below).<\/p>\n\n\n\n<p>Once schools\u2019 rising costs are taken into account, the injection works out as a 1.1 per cent average annual real-terms increase over the spending review.<\/p>\n\n\n\n<p>However, if you exclude the free school meals cash, which is effectively already ringfenced, the average annual per-pupil funding rise will be 0.9 per cent in real terms.<\/p>\n\n\n\n<p>When looking at the schools budget overall, the rise equates to just 0.4 per cent in real-terms over the spending review period. <\/p>\n\n\n\n<p>And once the free school meals expansion cash is excluded, \u201cyou get a real-terms freeze in the budget\u201d, said Paul Johnson, director of the Institute of Fiscal Studies.<\/p>\n\n\n\n<p>However, pupil numbers overall are now falling, which \u201cwould in principle allow a rise in spending per pupil\u201d, he added.<\/p>\n\n\n\n<p>The government has also described the rise in funding as a \u00a32 billion &#8220;real-terms&#8221; increase, but this is using 2023-24, the year before the election, as a baseline, so is misleading.<\/p>\n\n\n\n<p>Unions have welcomed the &#8220;small&#8221; increase, but said schools will still face difficult decisions in the short term.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. \u2026 but SEND rise means this could become real-terms freeze<\/strong><\/h3>\n\n\n\n<p>The Treasury documents also state that the government has set aside \u00a3760 million for \u201creform of the SEND system\u201d, with most of this falling in the 2026-27 year.<\/p>\n\n\n\n<p>This comes from the \u00a33.25 billion public services \u201ctransformation fund\u201d.<\/p>\n\n\n\n<p>However, the DfE <a href=\"https:\/\/schoolsweek.co.uk\/760m-send-reforms-cash-to-come-from-schools-budget-rise\/\" title=\"\">confirmed to Schools Week that this money is part of the increase in the core schools budget<\/a>.<\/p>\n\n\n\n<p>This, alongside the continued rise in the number of pupils with special needs, could actually mean \u201cthe best schools could hope for is a real-terms freeze in mainstream school funding per pupil\u201d, Luke Sibieta, from the Institute for Fiscal Studies, said.<\/p>\n\n\n\n<p>It is also expected that the government will need to provide more funding for its SEND reforms, with councils pushing for high-needs deficits to be wiped.<\/p>\n\n\n\n<p>The DfE has said the \u00a3760 million is just \u201cone part of the investment government will make in SEND reform, not the entirety\u201d.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Schools white paper in autumn (and not just for SEND<\/strong>)<\/h3>\n\n\n\n<p>The government will set out its SEND reform plans in a schools white paper, to be published in the autumn.<\/p>\n\n\n\n<p>The reforms will \u201cmake the system more inclusive and improve outcomes for all children and young people\u201d, the documents claimed.<\/p>\n\n\n\n<p>\u201cThe government will also set out further details on supporting local authorities as the government transitions to a reformed system as part of the upcoming local government funding reform consultation,\u201d the Treasury added.<\/p>\n\n\n\n<p>But Schools Week also understands that the white paper will be broader than just SEND, and include wider school reforms.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. More rebuilding cash, and scheme extended &#8230;<\/h3>\n\n\n\n<p>The government has already committed to ramping up the school rebuilding programme, which was slow in its first few years. Spending this year was due to be around \u00a31.4 billion.<\/p>\n\n\n\n<p>Today\u2019s documents show government expects to spend around \u00a32.4 billion per year for the programme over the spending review period.<\/p>\n\n\n\n<p>When the SRP was announced in 2021, it was due to be a 10-year programme to rebuild around 500 schools.<\/p>\n\n\n\n<p>The government said today that as part of its 10 year infrastructure strategy, it will \u201calso commit to expand the programme, providing long-term certainty out to 2034-35\u201d. <\/p>\n\n\n\n<p>However, it has not said how many schools will now be targeted.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. &#8230; and maintenance cash to rise<\/h3>\n\n\n\n<p>Spending on school maintenance and repairs will also rise by around \u00a3400 million to around \u00a32.3 billion a year by 2029-30.<\/p>\n\n\n\n<p>However, the document said this rise was only &#8220;in line with inflation&#8221;.<\/p>\n\n\n\n<p>Meanwhile, around \u00a32.6 billion will be spent from 2026\u201127 to 2029-30 to fund \u201cprovision of mainstream school places needed to meet future demographic needs\u201d. <\/p>\n\n\n\n<p>In 2021, the <a href=\"https:\/\/www.local.gov.uk\/about\/news\/spending-review-2021-lga-responds-ps26bn-funding-new-school-places-children-send\" title=\"\">spending review allocated the same amount of money for new provision <\/a>&#8211; which was focused on places for children with SEND.<\/p>\n\n\n\n<p>Sibieta said the increase in school capital spending overall equated to a 7 per cent real-terms increase, which reversed real-terms cuts since 2015.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. <strong>Ofsted funding boost for MAT inspections<\/strong><\/h3>\n\n\n\n<p>Despite reports Ofsted was unlikely to secure more cash at the spending review, documents show its budget will rise from just under \u00a3140 million in 2025-26, to nearly \u00a3159.4 million in 2026-27.<\/p>\n\n\n\n<p>This will fund the inspectorate to \u201csupport the government\u2019s mission to break down barriers to opportunity, including developing and implementing multi-academy trust inspections to increase accountability of MAT leaders\u201d, the Treasury documents stated.<\/p>\n\n\n\n<p>It\u2019s not clear exactly how much extra this is, as Ofsted\u2019s budget was actually \u00a3148 million in 2024-25, and will also fall back down to \u00a3153 million in 2028-29.<\/p>\n\n\n\n<p>No further details have been provided on what the cash will go towards. <\/p>\n\n\n\n<p>But Lynsey Holzer, CEO of The Active Learning Trust, said the choice of funding of projects \u201cdoesn\u2019t feel like it hangs together in terms of a well understood strategy from the government\u201d. <\/p>\n\n\n\n<p>She said it \u201cwould seem interesting timing, since we still don\u2019t have clarity on the new schedule for school inspections, so funding a second stream may be a moot point<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">7. No more info on 6,500 teachers pledge<\/h3>\n\n\n\n<p>Labour has pledged to recruit an additional 6,500 specialist teachers to shortage subjects by the end of this Parliament, and recently confirmed this would not include primary teachers.<\/p>\n\n\n\n<p>The DfE&#8217;s permanent secretary Susan Acland-Hood recently told an education committee \u201cfine detail\u201d of the policy would only be announced following the spending review.<\/p>\n\n\n\n<p>But the documents mention the pledge only once, stating that the settlement for schools and colleges &#8220;supports the government\u2019s commitment to recruit 6,500 more teachers over the course of this Parliament across secondary schools, further education settings and specialist schools&#8221;.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">8. Nurseries and libraries cash<\/h3>\n\n\n\n<p>The government has also confirmed it has allocated \u00a3370 million across four years to deliver more school-based nurseries in spare primary classrooms. The DfE previously announced \u00a337 million for the first tranche of projects.<\/p>\n\n\n\n<p>Ministers have also allocated \u00a3132.5 million of \u201cdormant assets\u201d to invest in school libraries and facilities to \u201csupport disadvantaged young people to access music, sport, and drama\u201d.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">9. How did the DfE budget fare?<\/h3>\n\n\n\n<p>Overall, the DfE\u2019s total budget will increase to \u00a3109.2 billion by 2028, \u201cequivalent to an annual average real terms increase of 1.5 per cent\u201d, the documents show.<\/p>\n\n\n\n<p>That 1.5 per cent rise puts the DfE behind most other areas of spending. <\/p>\n\n\n\n<p>For example, spending on energy security and net zero is rising by 16 per cent, the law officers&#8217; departments are getting a 6.2 per cent boost and business and trade is getting 5.8 per cent.<\/p>\n\n\n\n<p>However, it&#8217;s worth pointing out the DfE has a much larger overall budget than many other government departments. Just looking at cash amounts, education got the fourth highest increase of all departments.<\/p>\n\n\n\n<p>But, according to the Treasury documents, the DfE&#8217;s administration budget will drop by 15 per cent over the spending review period to \u00a3490 million.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"748\" height=\"705\" src=\"https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2025\/06\/Screenshot-2025-06-11-at-143206.png\" alt=\"\" class=\"wp-image-230808\" srcset=\"https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2025\/06\/Screenshot-2025-06-11-at-143206.png 748w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2025\/06\/Screenshot-2025-06-11-at-143206-670x631.png 670w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2025\/06\/Screenshot-2025-06-11-at-143206-640x603.png 640w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2025\/06\/Screenshot-2025-06-11-at-143206-244x230.png 244w, 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