The government pledged extra cash for schools and SEND at last week’s budget. Now the dust has settled, here’s what we know… 拢2.3bn budget boost means return to 2010 levels (but difficult decisions ahead) The chancellor Rachel Reeves announced the core schools budget would increase by 拢2.3 billion next year. However, 拢1 billion is specifically for high-needs. The Institute for Fiscal Studies (IFS) has said the increase represents a 1.4 per cent real-terms increase in total spending, or 1.6 per cent in spending per pupil. Luke Sibieta, an IFS research fellow, said the growth in core school spending would lift spending per pupil, after adjusting for inflation, to about 拢8,100 鈥 just above its 鈥渉igh point of 拢8,000 in 2010鈥. The Conservatives promised for years that funding rises would restore budgets to 2010 levels in real terms, but inflation and cost rises kept setting the pledge back. The government has also said the 拢1.3 billion would 鈥渃ontinue to fully fund this summer鈥檚 5.5 per cent pay award for teachers, and help cover pay awards in 2025-26鈥. Budget 2024: Back to the future on school spending This was expected. When the government accepted the pay rise in July it said that it would provide almost 拢1.2 billion in the current financial year before rolling the funding into the national funding formula from next year. But the mention of next year鈥檚 pay rises raises the prospect that the 2025 pay award will not attract full additional funding. The Department for Education also said that 鈥渄espite the investment, there will still be difficult decisions to take on how money is spent right across the public sector 鈥 including in schools鈥. SEND cash: is it for schools or to fill council blackholes? Education secretary Bridget Phillipson said the extra 拢1 billion in SEND funding would 鈥済o directly to providing provision鈥 and represented a 6 per cent real-terms increase. But this contradicts the Treasury, which said in budget documents that it expected 拢865 million of the pot would go on reducing councils鈥 huge SEND deficits. Treasury documents stated councils would have 鈥渄iscretion鈥 on how they spent the additional cash, but predicted 鈥渋t is very likely that they will use the funding to reduce their in-year deficit鈥. A damning report by the National Audit Office last month revealed predicted a cumulative deficit on councils鈥 high-needs funding budgets of about 拢4.6 billion by March 2026. The cash was an 鈥渋mportant step鈥 to return the system 鈥渢o financial sustainability鈥, the Treasury said. It would be 鈥渂uilt on鈥 through phase two of the spending review next spring. National funding formula allocations will be published at the end of this month. Schools funded 鈥榓t a national level鈥 for National Insurance rise The government will raise employers鈥 NI contributions by 1.2 percentage points to 15 per cent from April, an increase the National Foundation for Educational Research has estimated icould cost schools hundreds of millions of pounds. The Treasury has said government departments would get funding to compensate public sector organisations, but the amount will not be confirmed until spring. When Phillipson was asked whether schools and colleges would be 鈥渇ully compensated鈥 for the rise, she said they 鈥渨ill be compensated at a national level鈥. Reeves The wording here is important, because there are often winners and losers when funding is distributed to schools, so there is still no guarantee each school will receive all the funding needed. In the past, the share of cash given to schools with smaller teacher-to-pupil ratios 鈥 such as special schools and alternative provision 鈥 has been way below what they need. The DfE must save another 拢1.9 billion It wasn鈥檛 all good news. The DfE will have to save 拢1.9 billion as part of a government cost-cutting drive. Reeves said all departments will have a 2 per cent productivity, efficiency, and savings target from next year. The DfE said this week it was 鈥渁lways looking鈥 at how it could use its funding 鈥渁s efficiently as possible to deliver best value鈥 for children. It pointed to savings through the review of the free schools programme and scrapping the Conservative鈥檚 plans for an Advanced British Standard. It has already wielded the axe to fill a potential 拢1.5 billion budget black hole to fund teacher pay rises in previous years. Cuts include development courses, teacher 鈥渢op-up鈥 training and governor recruitment schemes. Phillipson also urged schools to use their money 鈥渕ore efficiently, wherever possible鈥 as there would be 鈥渢ough decisions to take on how money is spent鈥 across the public sector. Breakfast clubs may not be rolled out until April 2026 Labour鈥檚 free breakfast clubs for primary pupils may not be rolled out nationwide until April 2026 at the earliest. The 拢30 million set aside for the clubs will include money for an 鈥渆arly adopter鈥 scheme, with 750 primaries taking part for a year from April 2025.聽 It suggests a national roll out 鈥 pledged in the party鈥檚 manifesto 鈥 will come the following year at the earliest. The DfE said it would share further timings of national rollout in due course. The new funding also covers the extension of the existing national school breakfast club programme into 2025-26. The scheme, aimed at schools in the poorest areas, was due to end next July, prompting concerns it would create a 鈥渃liff edge鈥 of support for secondary schools 鈥 which Labour鈥檚 scheme does not cover. Schools in disadvantaged areas are eligible if they have 40 per cent or more pupils in bands A-F of the income deprivation affecting children index. The scheme is used by about 2,700 schools. Extra capital cash only covers existing rebuilds Reeves announced last week that she would hand the DfE 拢6.7 million in capital funding next year, a 鈥19 per cent real-terms increase鈥 on this year. However, documents show this year is a low bar with capital funding falling from 拢6.2 billion in 2023-24 to 拢5.5 billion. And high inflation in the construction industry has meant initial estimates have slipped. The new money includes 拢1.4 billion to fund the school rebuilding programme in the 2025-26 financial year, up 拢550 million on the spend this year. But it will not fund any new projects. The government has not said whether the programme overall would be expanded beyond the roughly 500 projects already announced. Nor has it said what funding would look like in the future. The capital funding also includes 拢2.1 billion to 鈥渋mprove the condition of the school estate鈥, up 拢300 million compared with this year. However, officials have said that the new government is reviewing its systems for allocating maintenance cash 鈥 such as the condition improvement fund and school capital allocations. 35,000 more private schools pupils likely to join state sector The government predicts 35,000 private school pupils will move into state schools as a result of the VAT policy change, costing about 拢300 million after several years. VAT will be charged on fees from January and the schools will have to pay business rates from April. The government said this week it expected about 3,000 pupils to move before the end of the 2024-25 academic year and that 35,000 would move 鈥渋n the long-term鈥 with revenue costs to peak at 拢300 million 鈥渁fter several years鈥. The policy is expected to earn about 拢1.8 billion which the government said is 鈥渆xpected to have a very significant positive net impact on the exchequer鈥. However, ministers are now facing legal action from the Independent Schools Council, an umbrella body for seven associations representing such schools. The council said its case would centre around alleged breaches of the European Convention on Human Rights (ECHR) and Human Rights Act 1998.