Delivering the statement to parliament, Chancellor George Osborne said government departments would face reductions of one per cent in 2013/14 and two per cent in 2014/15.
This equates to £155m savings from the Department for Education budget in 2013/14 and a £305m in 2014/15.
The Department for Communities and Local Government (DCLG) budget will be protected next year, but will be subject to a two per cent cut, equivalent to £445m, in 2014/15.
Rick Muir, associate director for public service reform at IPPR, told CYP Now that children and young people's services are likely to be hardest hit by the reduction to the DfE's budget, since ministers have committed to protecting spending on schools.
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