Autumn Budget 2025: What Schools and Educators Need to Know

The Chancellor’s Autumn Budget has landed, and while there are some positive steps for education, there are also big concerns about rising costs and long-term funding, especially around SEND.

Here’s a summary of what this year’s announcements mean for schools, academies, and education professionals across England.

What’s New for Schools

• £5 million for secondary school libraries: State secondary schools will receive new funding, around £1,400 per school, to buy new books. This supports the government’s upcoming National Year of Reading 2026.
• £18 million for playgrounds: The government has pledged funding to improve up to 200 playgrounds across England over the next two years. It’s unclear yet whether all sites will be school-based.
• No new revenue funding for schools: While the school's budget is already set to rise by £4.7 billion by 2028, there were no additional funds announced in the Budget to support schools facing rising pay, energy and staffing costs.

SEND Funding Changes Raise Questions

One of the most important updates is that the government will absorb the full cost of SEND provision from 2028.

• Local authorities will no longer be allowed to run SEND budget deficits.
• The cost pressure is expected to reach £6.3 billion annually, with £14 billion in historical SEND debt also unresolved.

This could place extra strain on school budgets if mainstream funding does not increase to match demand.

Rising Costs Still a Challenge

Even with increased funding over the next few years, schools still face financial pressures. These include:

• Teacher and support staff pay rises
• Rising costs for energy, catering and cleaning
• More children with complex needs requiring specialist support

Many schools may need to re-evaluate spending plans, including enrichment activities, non-urgent maintenance and additional interventions.

Wider Social Impacts to Be Aware Of

Two-child benefit cap scrapped

From April 2026, the government will remove the Universal Credit cap that limited support to the first two children in a household.

• This is expected to lift around 450,000 children out of poverty.
• School leaders have long warned that this policy had a direct impact on pupil wellbeing, attendance and outcomes.

Private school VAT changes to raise more

The government’s plans to charge VAT on private school fees will now generate £40 million more than expected, according to updated figures.

• Around 6% of pupils are expected to move from private to state schools in the long term.
• The extra funding could potentially support wider investment in public education, though it hasn’t yet been earmarked for schools.

What This Means for Schools

For school leaders and business managers:

• Budget cautiously and prepare for growing SEND demand
• Factor in the lack of additional revenue funding in short-term planning

For SENDCos and support teams:

• Monitor changes in funding pathways
• Ensure planning supports inclusive practice with limited resources

For classroom teachers and TAs:

• Expect growing demand for support services
• Keep communication strong with families affected by poverty or changes to benefits

We’re Here to Support You

At Flourish Education, we work in close partnership with schools across the West Midlands and beyond, helping you navigate change, stay fully staffed and continue delivering high-quality education.

Whether you're facing long-term staffing gaps, last-minute cover needs or SEND support pressures, we’re here to help.