Ministers face having to cut 拢300 million from school budgets next year after the recent national insurance (NI) contribution rise was axed. In his , Chancellor Kwasi Kwarteng announced the 1.25 percentage point increase in NI, that came into effect in April, would be reversed. The increase, dubbed the 鈥渉ealth and social care levy鈥�, was meant to raise more funding for the NHS. Schools were given extra funding to cover the estimated 拢300 million a year cost. The first instalment was paid this year, with future funding rolled into the national funding formula. Although this year鈥檚 cash will not be clawed back, the Treasury confirmed department budgets will be adjusted from 2023-24. Schools . The Department for Education could find the cash from elsewhere in its budget, but school funding makes up the vast majority of its spend. Luke Sibieta, from the Institute for Fiscal Studies, said: 鈥淓ven though the real effects will be approximately zero, announcing cuts to school funding rates at the present time will be a bit of an unfortunate look for the DfE.鈥� He added the clawback could be 鈥渜uite difficult鈥� to implement as the cash is rolled into the natioanl funding formula and school funding rates for next year are already announced. The Treasury said there will be an update on school budgets in 鈥渄ue course鈥�. The DfE would not comment. It comes as government departments have been “. Simon Clarke, the levelling-up secretary, criticised the 鈥�, adding that government departments would have to 鈥渢rim the fat鈥�. School budgets have been squeezed for over a decade, although government has upped funding in recent years. However rising costs – such as soaring energy prices and unfunded staff pay rises – have wiped out increases. Caps on energy bills come in from October. A school with a 拢10,000 monthly bill will save about 拢4,000. But aside from a 拢2.1 billion fund for public bodies to invest in energy efficiency and renewable heating, there was no further financial help in last week鈥檚 mini-budget. Geoff Barton, the general secretary of the ASCL leaders鈥� union, said the government had 鈥済iven away billions of pounds to promote growth, but not a penny for education鈥�. 鈥淪ome schools, particularly small primaries, may no longer be financially viable,鈥� he said 鈥� predicting larger classes, cuts to subject options and widespread job losses.
Jonathan Roe 1 October 2022 Last week鈥檚 鈥榝iscal event鈥� increasingly feels like a coup. A small cabal without a mandate are forcing an idealogical position, and starting to take decisions that will damage the life chances of children. Leora Cruddas and Dan Morrow on Twitter today are right – we must resist this.