Nearly half of the primary and special schools in England say they had or are expecting a deficit for the past academic year, new research shows.
The National Foundation for Educational Research (NFER) found that most schools said they were making cuts to meet costs amid financial pressures in the cost-of-living crisis.
Despite these cuts and the schools’ budget increasing by £3.5 billion for 2023-24, 49 per cent of primaries, 48 per cent of special schools and 41 per cent of secondaries expect an in-year deficit for 2022-23.
Many schools are also expecting their positions to worsen this year. Two-fifths of special schools and just under half of mainstream schools expect both an in-year deficit and needing to make cuts in the coming year.
The NFER report suggests that more than half of primary schools are asking parents for extra funds to accommodate their additional costs.
Teachers and senior leaders reported that the cuts they have had to make have impacted on their teaching and learning provision, particularly in the most disadvantaged schools.
The report also warns that cuts are affecting special educational needs and disabilities (SEND) provision, with 47 per cent of primary schools reporting cutting teaching assistant numbers, as well as 32 per cent of special schools and 28 per cent of secondaries.
School funding: Budgets hit by increased costs
Jenna Julius, NFER research director and a co-author of the report, said: “In the short term, schools need greater financial support to help meet the additional direct expenses associated with the increased cost of living, such as energy and school meal bills.
“Teachers and senior leaders, particularly in the most disadvantaged schools, report their learning provision has been negatively impacted by cuts being made in response to increased costs.”
The new data has been published in the NFER’s Cost-of-living crisis: Impact on schools - school provision report. The research received responses from 1,354 senior leaders and 1,317 teachers in mainstream schools, and 87 senior leaders and 41 teachers in special schools.
The NFER collected data via an online survey sent to all state-funded mainstream primary and secondary schools and all special schools in England in April and May 2023. This was before the latest teacher pay deal and funding was announced.
The study was conducted with ASK Research and funded by the Nuffield Foundation.
Amy Skipp, director of ASK Research, said: “The cuts being made in response to cost-of-living pressures in special schools are extremely concerning, particularly as they include core parts of the support for pupils with SEND, to maximise their development, independence and quality of life as well as providing respite for families.
“For example, almost three-tenths (28 per cent) of special schools report cutting their core specialist school offer, which includes the provision of hydrotherapy, physiotherapy and independence activities.”
Struggling schools also reported cutting targeted learning support, such as tutoring, while 54 per cent of primaries reported making cuts to buildings and maintenance, along with 47 per cent of special schools and 43 per cent of secondaries.
The NFER report calls for greater financial support for schools to address the pressures of the cost-of-living crisis, and also recommends that the SEND and Alternative Provision Improvement Plan is accelerated to make sure pupils get the support they need.
Paul Whiteman, general secretary of the NAHT school leaders’ union, said: “School leaders are doing their utmost to minimise the impact of these cost pressures upon children’s education, but this is a real challenge, and particularly difficult for those in more disadvantaged areas or with higher numbers of pupils with special education needs and disabilities.
“These findings give the government notice that it must mitigate the impact of continuing inflation by offering the level of investment needed in schools in the autumn spending review in November.”
The NEU teaching union’s deputy general secretary Niamh Sweeney said: “Government funding is increasing, but not by nearly enough to match the increase in demand. NEU analysis indicates SEND funding should be over £3 billion higher if education, health and care plans were funded at the same rate as in 2015-16. Ignoring the issue will not make it go away.”
A government spokesperson said: “We listened to schools and recognised the pressures they were facing in 2022-23, due to the challenges of high inflation.
“In the Autumn Statement, we announced that we would be investing an extra £2 billion into our schools this year and next, in recognition of those challenges. Following the additional £525 million in 2023-24 and £900 million in 2024-25, school funding will now be at over £59.6 billion next year - the highest level in history, as measured by the IFS [Institute for Fiscal Studies].”
