What does Budget 2024 mean for your school?
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Chancellor Rachel Reeves has just delivered the first Labour Budget in 14 years.
It’s come with a number of changes for schools— some expected, some welcomed… and some that are divisive. This week, we’re breaking down exactly what the new Budget means for your school as we head into 2025 together. ??
1.?We’ll see a ￡2.3 billion increase go to core schools funding! Treasury documents identify this as a real-terms per-pupil increase , which is welcome news for many in the sector after a relatively consistent fall in real-terms spending per pupil since 2009-10 . It’s a big, welcome boost, but it’s got to work hard: Labour’s teacher recruitment targets and 5.5% teacher pay rise make demands on this pool too.
There’s also a capital investment boost of ￡6.7 billion for the Department for Education itself, a 19% increase on last year, with a further ￡2.1 billion earmarked for school maintenance after the RAAC crisis under the last government .
2.?There’s a ￡1 billion uplift for SEND. A further ￡1 billion of that ￡2.3 billion is a dedicated uplift for SEND and alternative provision, a 6% real-terms increase. But is it enough? It’s a historically large investment, but according to Jon Andrews, Head of Analysis at the EPI , ￡1 billion represents only a quarter of the LA high-needs deficits identified by the National Audit Office .
Councils will have discretion on how they spend the cash— but the Treasury predicts that they’ll use the funding to reduce their in-year deficit . Reeves has also made no mention of extending Statutory Override protocol, which allows SEND (and other) funding deficits to sit off a council’s balance sheet, set to expire in March 2026.
3.?Private schools to lose their VAT exemption status in January 2025… VAT will be charged on private school fees next year, and institutions will have to pay business rates as of April. This is expected to raise ￡1.7 billion for state education by 2029-30 , and lead to private schools raising fees by around 20%.
4.?…Which could spell trouble for SEND learners, schools and parents.? To protect SEND students whose EHCP states their needs can “only be met” in a private school, councils funding these places “will be compensated for the VAT on those pupils’ fees”. Private schools providing education to those with EHCPs remain eligible for business rates relief.
But is this adequate? Parents and sector leaders say no : of the thousands of SEND learners in the UK who attend private schools, some don’t even have an EHCP, and many who do have no specific school delineated in Section I. So critics think this VAT application may see vulnerable SEND learners leave private schools for state ones , which could compromise their mental health and education.
They also point out it risks overloading mainstream SEND provision, channelling funding away from much-needed independent specialist settings, and increasing pressure on EHCP applications and wait times, which are already struggling with demand.
5.?There’s a ￡300 million boost for Further Education (FE). Colleges look set to benefit from ￡300 million allocated to Further Education (and in the case of many colleges, ￡40 million from the growth and skills levy, and ￡950 million from capital skills funding). There’s no stipulation on what that ￡300 million is to be spent on, but unions have recommended a portion should be used by colleges to match the 5.5% pay rise that teachers were awarded over summer .
6.?And the DfE will get support for National Insurance increases. The new Budget sees employee National Insurance contributions stay the same, but employer National Insurance contributions rise by 1.2% from April 2025. The news sparked concern in schools , many of which are already struggling to recruit and keep staff on their current personnel budgets— but the Treasury confirmed that funding will be allocated towards the cost , the full scope of which will be available in Spring.
So there we have it! There are some big changes afoot, and some very welcome injections of cash headed into the education sector. But is it really enough to ensure that no learner gets left behind ?
And where does this leave your students with SEND?
As ever, we’d love to hear what you think about all things funding, provision, and Special Educational Needs. Let us know in the comments below! ??