The Labour government’s Autumn Budget 2024, led by Chancellor of the Exchequer Rachel Reeves, outlines key funding boosts for schools. Core school funding will see a £2.3 billion increase in 2025-26, alongside an additional £1 billion for special educational needs and disabilities (SEND). This 1.4% real-terms funding increase per pupil, brings spending to £8,100 per pupil, slightly above the 2010 levels.
SEND and Alternative Provision
A major focus of this budget is to address high needs in SEND and alternative provision. SEND funding, expected to alleviate around £865 million of local authority deficits, still faces scrutiny. Education leaders say the rising demand for education, health and care (EHC) plans makes this increase more of a necessary adjustment than transformative funding.
Teacher Pay Increase
Around £450 million of the new funding will cover a 5.5% teacher pay increase for 2025-26, leaving £850 million for other expenses. This limits the growth of National Funding Formula (NFF) rates, which are expected to increase by roughly 2%, slightly below recent increases.
Given the ongoing recruitment challenges within education, this funding boost may help reduce teacher turnover and help teacher retention. By helping retain experienced teachers, these budget measures could improve stability and consistency in classrooms in both primary and secondary schools.
School Maintenance
The budget also provides £6.7 billion for educational capital projects, with £1.4 billion dedicated to the School Rebuilding Programme and £2.1 billion for school maintenance.
The General Secretary of the school leaders’ union, the NAHT, Paul Whiteman said that the budget for school buildings was "helpful" but that there is still "a significant shortfall in terms of what is needed to restore the school estate to a satisfactory condition".
Additional Funding
Additional measures include tripling funding for breakfast clubs and creating 3,000 new school-based nurseries with a £15 million investment. To further bolster revenue, the government will impose a 20% VAT on private school fees starting January 2025, anticipated to generate £1.7 billion annually.
Overall, the budget represents a step forward for schools, particularly in areas of teacher pay and SEND support.
You can read the full budget here –
Autumn Budget 2024