Education Leaders Warn of Staff Cuts and Overcrowded Classrooms Next Year Amid Rising Costs

The UK’s largest education trade union has said that schools in England are being stretched to breaking point.

Labour Party leader Sir Keir Starmer speaks with pupils as he visits Whale Hill Primary School in Eston, England, on June 11, 2024. Ian Forsyth/Getty Images

Most schools will see their costs outstrip funding increases next year, leading to staff cuts and overcrowded classrooms, a coalition of education leaders has warned.

The School Cuts coalition said on Monday that 76 percent of primary schools and 94 percent of secondary schools will not be able to afford their costs next year.

Run by the National Education Union (NEU), Association of School and College Leaders (ASCL), National Association of Head Teachers (NAHT), National Governance Association (NGA), and ParentKind, the group urged the government to prioritise investment in schools.

The group warned that the difference between rising school costs next year and mainstream funding increases will lead to a £700 million shortfall, leaving schools unable to fully cover staff pay.

It estimates that funding cuts will bring per-pupil funding in England to its lowest level in at least 15 years. Every local authority will face a real-terms funding reduction, averaging 1.2 percent per pupil, it added.

According to the coalition, schools in England are struggling to recruit and retain teachers while budget cuts reduce subject offerings, limiting students’ learning opportunities.

The NGA’s latest survey of school governors in England showed that only 19 percent of schools and trusts see their schools as financially sustainable.

“Our members are clear that many schools and trusts simply cannot afford further cuts, and it is young people who will ultimately pay the price,” said NGA Chief Executive Emma Balchin.

In July, the School Teachers Review Body that advises the government on teachers’ and school leaders’ pay in England, recommended a 5.5 percent pay increase for teachers for the 2024/25 academic year. This was accepted by the new Labour government in full.

However, after the significant bump in 2024, the government proposed a much smaller increase of 2.8 percent for the 2025–2026 academic year. The Department for Education (DfE) said this pay award would be appropriate in “the context of the challenging national economic picture.”

ASCL’s General Secretary Pepe Di’Iasio called the current situation “unsustainable” and said that schools across England are facing budget deficits and preparing for further cuts.

“If the government is serious about young people getting the opportunities they deserve, it must demonstrate this by ensuring schools and colleges have the resources they need to deliver the best possible education to every pupil and student,” he added.

The call comes ahead of the Spring Statement by Chancellor Rachel Reeves on March 26 and the Spending Review due to be published in late spring.

Time for Action

Education leaders are taking their concerns to Parliament on Monday, to brief MPs on school funding in a move sponsored by Labour MP for Portsmouth North and former teacher, Amanda Martin.

Martin has acknowledged Labour’s efforts to hire more teachers, increase pay, and reform the curriculum since taking office. Funding for these measures, as well as free breakfast clubs and expanded early years education, was announced in the October Budget.

Chancellor of the Exchequer Rachel Reeves delivers a speech during the Financial and Professional Services Dinner at Mansion House, in the City of London, on Nov. 14, 2024. Isabel Infantes/POOL/AFP via Getty Images

In the Budget, Reeves also announced that the second phase of the Spending Review will analyse around £1.2 trillion in public spending and look for ways to cut waste without increasing taxes.

It will use a zero-based budgeting approach, meaning that every government department must justify all their spending from scratch rather than relying on previous budgets. For example, the DfE will need to prove why specific school funding programmes are essential.

NAHT General Secretary Paul Whiteman urged the government to use the upcoming review to “inject additional funding” into schools.

“The time for action is now. Our schools form the bedrock of the nation’s future, providing children with the skills and opportunities they need to thrive. Without immediate and substantial investment, we risk failing an entire generation and eroding the economic and social fabric of our communities,” he said.

Meanwhile, the general secretary of the UK’s largest education trade union, NEU, Daniel Kebede said that Labour’s plans for more cuts will force schools to drop subjects, reduce support staff, and cut back on essential maintenance.

“Schools are being stretched to breaking point. Fourteen years of cuts have drained budgets and put our children’s education at risk,” he said.

Addressing the Confederation of School Trusts in November, Education Secretary Bridget Phillipson vowed to “put education back at the forefront of national life” and committed to recruiting an additional 6,500 expert teachers across mainstream and specialist schools.

Shadow Education Secretary Bridget Phillipson meets pupils during a visit to St. Matthews Primary School in Westminster, central London, on Jan. 9, 2024. Stefan Rousseau/PA

SEND Funding and Future Cuts

Financial pressures are also mounting on the special educational needs (SEN) system in schools across England. The National Audit Office has warned the system is financially unsustainable and urgently needs reform.

As of January 2024, 1.9 million children and young people aged 0 to 25 had SEN, with 1.14 million receiving support in schools, an increase of 14 percent since 2015.

In February, the Commons Education Committee heard that the government’s £740 million cash injection to address the issue does not directly address key staffing shortages or training gaps.

According to the DfE, rising SEN costs are a key factor in over 43 percent of local authorities facing potential bankruptcy by March 2026.

Phillipson has acknowledged the “stark” reality of the special needs system in England and has pledged to increase the number of children with special needs attending mainstream schools.

Calls for more school funding come as the government plans to increase defence spending to 2.5 percent of GDP by 2027, with a goal of 3 percent within the decade.

The defence spending hikes were announced alongside a cut to the development aid budget. The Institute for Fiscal Studies (IFS) estimates that since these changes roughly offset each other, overall government spending plans remain unchanged.

However, Ben Zaranko, associate director at IFS, warned that reaching the 3 percent defence spending target will require “tough choices and sacrifices elsewhere—whether through higher taxes or cuts to other areas of government spending.”