Anger as Chancellor’s budget ignores education sector

  • 27th March 2025

Rachel Reeves leaves Downing Street to deliver her Spring Statement. Image, Alecsandra Dragoi/Treasury

Education chiefs expressed anger and concern after Chancellor, Rachel Reeves’ Spring Statement failed to bring additional funding for the sector.

While Reeves did mention schools in her House of Commons address on Wednesday, accusing the previous Conservatives leadership of leaving school roofs ‘literally crumbling’, the only reference to capital allocations was £13bn more for infrastructure over the next five years, although none of this was sector specific.

And Reeves’ plans for a major review of the country’s welfare system will further impact on the sector, critics are warning.

Daniel Kebede, general secretary of the National Education Union, said: “Austerity is ended in deeds not words.

“The Spring Statement will cause deep anger among education staff because it does not address the key issue preventing schools and colleges from supporting children and young people – a lack of funding.

“Children get only one chance to go to school and college, and education staff expect government to deliver enough funding for safe school buildings, experienced teachers, appropriate class sizes, and pastoral and SEND services.

The Spring Statement will cause deep anger among education staff because it does not address the key issue preventing schools and colleges from supporting children and young people – a lack of funding

“Cuts to funding and huge real-terms pay cuts of a fifth since 2010 have made teaching less attractive and the serious recruitment and retention issues are now plain for all to see.

“Children are losing out.

“Labour has pledged to increase opportunities for working class children, but this simply won’t happen without investment in our schools and funding for the pay increases needed to value, recruit, and retain the educators we need.

“The NEU backs calls for a wealth tax and rejects the concept that cutting welfare will boost employment or grow our economy.

“The two-child limit and any further cuts to welfare will directly and immediately worsen the life chances for thousands of children.

“Talk of ‘efficiency’ savings in education is incendiary when teachers are spending their own salaries on what’s needed in the classroom.”

Without sustained long-term investment, it will only become more difficult for school leaders to provide the learning experience all pupils deserve

Paul Whiteman, general secretary of school leaders’ union, NAHT, added: “School budgets remain under severe pressure after years of under investment.

“It will be absolutely vital that they are protected and built upon in the multi-year June spending review, with additional funding urgently needed for core services, supporting children with educational needs, and the school estate.

“Without sustained long-term investment, it will only become more difficult for school leaders to provide the learning experience all pupils deserve.”

And Julia Harnden, funding specialist at the Association of School and College Leaders, told Education Property: “Nothing in the Spring Statement changes the bleak financial situation being faced by schools and colleges.

“The reality is that many will have to make further cuts to their budgets and thus the educational provision they are able to provide to children and young people.

“Increased capital spending is welcome, and it is vital that a fair proportion is allocated to education to allow schools and colleges to make the repairs and refurbishments they desperately need. This would only begin to address the £3.6bn shortfall in capital funding for education since 2021.”

Early years leaders are particularly concerned the welfare review and increases to National Insurance contributions will put additional pressure on parents and force them out of work, with a knock-on effect on nurseries.

Increased capital spending is welcome, and it is vital that a fair proportion is allocated to education to allow schools and colleges to make the repairs and refurbishments they desperately need. This would only begin to address the £3.6bn shortfall in capital funding for education since 2021

The Early Education and Childcare Coalition tweeted that: “The Chancellor must ensure that early years funding covers the cost of delivery so that every child can thrive and their parents can stay in work.

“Doing so will boost tax receipts, cut the benefits bill, and deliver growth for us all.”

And the Early Years Alliance said there was a likelihood of many settings having to increase fees and limit the places they offer, resulting from pressures due to upcoming changes and years of underfunding.

Chief executive, Neil Leitch, described it as ‘disappointing and incredibly frustrating’ that the early years sector has been ignored.

If the Government is truly serious about both growing the economy and ensuring that every child gets the best start in life, surely it has no choice but to invest in the sector that can help it do both

“Many settings have been left with no choice but to substantially increase parent fees or risk permanent closure,” he added.

“If the Government is truly serious about both growing the economy and ensuring that every child gets the best start in life, surely it has no choice but to invest in the sector that can help it do both.

“The sooner the Government’s actions on the early years start matching its rhetoric, the better for everyone.”

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