Budget pressures plague the education sector

Tight budgets continue to burden the education sector and adding to these woes is the increasing cost of energy and power, according to energy litigation experts Energy Solicitors Limited. 

Despite the October Budget announcing a funding boost of £2.3bn for schools in 2025-26, schools across the country brace for tighter budgets and financial instability. This is due to rising costs of Special Educational Needs (SEN) provision, higher wages, and pension contributions. 

A recent report from the Institute for Fiscal Studies (IFS), cited by the Financial Times, highlights much of the funding boost will be absorbed by growing expenses. 

Of the £2.3bn increase, £1bn is allocated for SEN needs, leaving mainstream schools with a 2.8% funding rise per pupil. However, school costs are expected to rise by 3.6%, driven partly by a 2.8% proposed pay increase for staff. This imbalance leaves schools facing significant financial strain. 

Furthermore, Local councils are projected to face a funding gap of £3.4bn by 2027-28 as they struggle to meet growing demand. 

The findings come as the government reviews spending plans for the remainder of the parliament, with growing calls for additional investment in education. 

Victoria Myers, Senior Partner at Energy Solicitors Limited said: “There are a range of factors adding to the education sector’s financial pressures. At ESL, we aim to support the education sector by working hard to claw back money mis-sold by energy brokers. By winning cases against unscrupulous energy firms and rogue brokers we can help to ease some of the short-term financial pressures.”

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