£5.4bn funding shortfall leaves schools at 'breaking point'

Gabriella Jozwiak
Monday, March 25, 2019

The government has underfunded schools in England by £5.4bn over the past three years and risks "disastrously" letting down a generation of children, education unions have warned.

National Association of Head Teachers general secretary Paul Whiteman, warns that funding shortfall is leaving schools at "breaking point". Image: NAHT
National Association of Head Teachers general secretary Paul Whiteman, warns that funding shortfall is leaving schools at "breaking point". Image: NAHT

Analysis by the School Cuts coalition reveals 91 per cent of all schools in England are affected.

The group warns that budget shortages at the 17,723 schools are leading them to operate with reduced staffing, leaving children with less additional support, particularly around issues such as mental health.

They are also offering fewer subject choices for study and extra curricular activities.

Based on the actual Department for Education funding received by 19,414 schools from 2015/16 to 2018/19, the analysis brings together schools block funding allocations, including a new Teacher Pay Grant for 2018/19, pupil premium and sixth form funding. 

In previous analysis, the DfE criticised the coalition for only considering schools block funding.

However, with the other elements now accounted for, the position is far worse than reported last year, when the group found a shortfall of £2.8bn since 2015.

This year's calculation does not include high needs funding for individuals with education, health and care plans in secondary schools, or early years funding provided to some primary schools with nurseries.

But both of these funding streams have been shown to fall below their delivery costs, the group says.

GMB national secretary Rehana Azam said low-paid school support staff were having to buy food, stationary and sanitary products for children with their own money. 

National Association of Head Teachers (NAHT) general secretary Paul Whiteman said schools were at "breaking point". 

"School leaders have made all the obvious savings," he said. 

"Now, class sizes are rising and the range of subjects schools can offer is shrinking as they desperately try to balance the books.

"Everyone agrees that the school funding crisis can only be solved by new money from the treasury."

Unison's head of education Jon Richards, called on ministers to "act now or a generation of children will be disastrously let down".

In October 2018, chancellor Philip Hammond infuriated school leaders by announcing a £400m one-off payment to schools to enable them to afford "little-extras".

The School Cuts Coalition includes the Association of School and College Leaders, GMB, NAHT, the National Education Union, Unison and Unite.

Matt Dunkley, chair of the Association of Directors of Children's Services resources and sustainability policy committee said: "It is clear that the overall quantum of funding for education is no longer sufficient and schools across the country are having to make tough decisions to cope with budget cuts, such as reducing staff and the curriculum as well as cutting back on pastoral and other support services. This is impacting on educational provision for pupils and further increases the risk of children with additional needs who could, with the right support, thrive in a mainstream school setting being squeezed into specialist provision, placing more pressure on already overstretched high needs budgets.

"With a sufficiently funded education system and SEND services schools and local authorities would be much better equipped to ensure all learners can achieve their full potential and become happy, productive citizens of the future. Without this, short-term savings might be made but a generation of children will pay the price."

A DfE spokesperson, said the figures in the report are "misleading".

"While we recognise that schools have faced budgeting challenges, this government has prioritised school funding, while taking difficult decisions in other areas of public spending - protecting the schools budget overall for five- to 16-year-olds in real terms since 2010. School funding in England is at its highest ever level and since 2017 we have given every local authority in England more money for every pupil in every school.

"The Secretary of State has made clear that as we approach the next spending review, he will back head teachers to have the resources they need to deliver a world class education."

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