As reported by BBC news, headteachers say rising costs and teacher pay hikes could force tough choices, with school budgets stretched beyond government funding increases
Headteachers say they face “difficult choices” over what their schools can afford, as a new report says they could be forced into further cuts next year.
The Institute for Fiscal Studies (IFS) says costs will outpace funding for schools in 2025-26.
Schools say that means they will struggle to fund the government’s proposed pay rise for teachers, as well as the support needed for children with special educational needs.
The Department for Education (DfE) said it would work with schools and local authorities to provide a “fair funding system that directs public money to where it is needed”.
The IFS estimates that school funding will rise by 2.8% in the 2025-26 financial year. But Wednesday’s report warns that costs are likely to rise by 3.6%, leaving schools facing tough choices.
Staff pay usually takes up the majority of a school budget. The government has suggested teachers’ pay should go up by 2.8% for the school year beginning September 2025, in line with plans for school spending.
The new analysis comes as the government considers its spending plans for 2026 onwards.
The Department for Education said school funding will increase to almost £63.9bn in the next financial year, including £1bn for children and young people with high needs.
A spokesperson said the government is “determined to fix the foundations of the education system”.
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