Schools are being urged to save up to 拢750,000 through redundancies, curriculum squeezes and cuts to programmes supporting the poorest pupils as the funding crisis escalates. Following this week鈥檚 spring statement, academy trust bosses are also expecting to have to eat into shrinking reserves ahead of a funding storm in September 鈥 with one expecting to use more than 拢2 million in three years. And chief executives in Sheffield are banding together to pool roles and services across their organisations, while worried council school heads have slashed theatre trips and swimming classes. Daniel Kebede Daniel Kebede, the general secretary of the , said austerity was 鈥渆nded in deeds not words鈥. 鈥淭he spring statement will cause deep anger…because it does not address the key issue preventing schools and colleges from supporting children and young people 鈥 a lack of funding.鈥 Eating into reserves Despite mentioning schools in her Commons speech, during which she accused the Tories of leaving classroom roofs 鈥渓iterally crumbling鈥, chancellor Rachel Reeves failed to announce any extra cash. This comes after Schools Week revealed earlier this month that school budgets will rise by about 0.5 per cent per pupil next year, with some saying they will lose money. Ministers later admitted there is not enough headroom to cover staff pay rises next year, meaning the prospect of more cuts. Leaders have also warned that grants to cover schools鈥 increased national insurance contributions will fall short by up to 35 per cent 鈥 while pupil premium increases will also fall short of rising costs. John Barneby, the chief executive of Oasis Community Learning 鈥 which runs 54 academies across England 鈥 said he 鈥渕ay need to utilise our reserves to ensure our schools can fully support all of our students鈥. 拢2.2 million hit to reserves The trust, one of the largest in the country, continues 鈥渢o reformulate our financial plans to address constraints鈥. Barneby said more investment wad needed as 鈥渓imited funding, rising costs and the deepening SEN crisis are stretching schools beyond capacity鈥. In the north east, Durham and Newcastle Diocesan Learning Trust expects to have to use about 拢300,000 of its 拢3.9 million reserves in 2024-25. Forecasts suggest it will eat up a further 拢1.9 million over the following two years. Paul Rickeard, its chief executive, said budgets had been dented further by the discovery of an underground leak at one of his primaries. The school will have to re-piped. The latest report compiled by the Kreston group, a network of accountancy firms, warned earlier this year that trusts鈥 financial buffers were already collapsing. Thirty-one per cent of chains鈥 reserves fell below level 5 per cent of total income 鈥 the level recommended by government 鈥 from 17 per cent two years ago. The Institute for Fiscal Studies has also warned school budgets will feel 鈥渧ery tight鈥 next year, adding some may 鈥渟truggle to cover their costs without making savings鈥. Nigel Attwood, the head of a local authority-maintained junior school in Birmingham, said his school had slipped into a 拢70,000 deficit. But he believed the 鈥渙nly way we鈥檙e really going to make a massive dent into those numbers will be staff. That鈥檚 something I鈥檓 not going to be doing in the foreseeable future.鈥 Leaders consider the 鈥榰nimaginable鈥 Adrian Rogers, head of the Chiltern Learning Trust, said dipping into reserves was a short-term fix. Having used 鈥渟everal million last year to cushion the staffing bill鈥, he expected to make 鈥渟ome large cuts鈥 in September. Chiltern has frozen recruitment for the next 鈥渢wo to three weeks鈥 across his 18 Bedfordshire schools, with heads set to be called on 鈥渢o look at the unimaginable鈥. His secondaries will be asked to find savings of up to 拢750,000, while primary leaders will be set savings targets of up to 拢250,000. 鈥淭he place to start is staffing because 75 to 80 per cent of your budget goes [there]. It鈥檚 about how that staffing can be tightened without having any impact on pupils.鈥 Another leader, who wanted to remain anonymous, said his MAT planned to reduce its central school improvement team, instead buying in support when needed. The Confederation of School Trust鈥檚 annual survey last year found 83 per cent of chief executives intended to focus their academy chain鈥檚 efforts on balancing budgets in 2025-26. Seventy-three per cent said they would also prioritise 鈥渃ost reduction鈥. Less than half felt confident about the sustainability of their trust. 鈥楴othing left to cut鈥 Meanwhile, secondaries in the Weydon MAT have been told to find 拢250,000 of savings on average. Its smallest primaries have a target of 拢25,000, although 鈥渢here鈥檚 nothing else to cut鈥. John Winter, its chief executive, said a range of choices were available in secondaries, such as not replacing outgoing staff and reducing the number of subjects covered at key stage 4. A school costs analysis published by the DfE last week said. schools would only be able to afford a staff pay rise of about 1.3 per cent next year. Ministers have recommended a 2.8 per cent rise for teachers. Jack Worth, of the National Foundation for Educational Research, pointed out that the Office for Budget Responsibility had increased its forecast of average earnings growth for 2025-26 from 3 to 3.7 per cent. 鈥淚n light of this, it seems unimaginable that the DfE teacher pay proposal of 2.8 per cent for the next academic year could remain unchanged.鈥 Energy and MIS switchovers Winter warned that, having already budgeted for a 2.8 per cent increase, 鈥渁 significant amount of money [would have to be found to balance the books鈥 if the government opted for a higher rise. In Sheffield, the Minerva Learning Trust is avoiding 鈥渄rastic action鈥, such as redundancies, and will instead dip into its 拢5 million reserves earmarked for building projects. Schools are being asked to draw up blueprints outlining how they can 鈥渕anage without staff should they leave鈥. Bev Matthews, it chief executive, has started working with other MAT leaders in the city to explore collaboration 鈥渟o we鈥檙e either sharing services or posts so more money can go back into schools. 鈥淚t might mean we start up a shared company that we run those services through.鈥 ‘A cycle of unrealistic financial planning’ One trust expects to shave about 拢700,000 off its bills when its energy deal 鈥 agreed when prices shot up following Russia鈥檚 invasion of Ukraine 鈥 renews later this year. Warren Carratt Leaders had hoped for a last-minute funding boost to help them with huge pressures in the next academic year. Warren Carratt, of the Nexus MAT in Sheffield, said he was 鈥渂eyond disappointed that we鈥檙e still stuck in a cycle of unrealistic financial planning, which smacks of deliberate denial. He added that 鈥渕any of us鈥 believed things would be better under a Labour government. Attwood, whose school is in a deprived part of Birmingham, is 鈥渃utting back on theatre trips鈥, sports competitions and reducing swimming lessons by a third, among other things. He has saved about 拢50,000. Child poverty crisis worsens The head of a council-run secondary in west London has been running a uniform programme supplying clothing and equipment to pupils on free school meals, asylum-seekers and looked-after children. 鈥淭hat fund doesn鈥檛 exist for the next academic year, so we鈥檙e to going have to review how we do it. Or do we review our uniform policy 鈥 are we going to be sticklers over what the uniform expectation is? 鈥淲hy am I going to punish a child and parent if they can鈥檛 afford to buy uniform?鈥 Adding to the strain schools are under, impact assessments suggest the government鈥檚 planned welfare cuts will plunge 50,000 more children into poverty over the next five years. Kebede said that Labour鈥檚 pledge to boost opportunities for working-class children 鈥渟imply won鈥檛 happen without investment in our schools and funding for the pay increases needed to value, recruit and retain the educators we need鈥.
Sir in a school near you. 30 March 2025 What an utter utter disgrace….the Tories left the state education sector in. Appalling and will NEVER be forgotten by those in education. And people voted for 14 years of it!! The current government has an absolute mountain to climb, and certainly are constrained by the dire finances, but if people think they can dump on Rachel Reeves without understanding the absolute negligence of the previous 14 years then theyre completely deluded. Yes more needs to be prioritised in education, yes we have to make our case loudly and unapologetically but man alive this has to be better than the malicious Tory wrecking ball that took us all to the brink. Its gonna take two terms people, Rome was not built (rebuilt) in a day.