The chancellor has set out government spending plans for the next three years, boosting the schools budget, extending the rebuilding programme and increasing Ofsted’s funding. But the school funding increase will only amount to a roughly 1 per cent average real-terms increase to per-pupil funding each year (read our news story on that here). It also has to cover cash for SEND reforms, the free school meals expansion and next year鈥檚 pay award. Here’s what you need to know. 1. 拢4.7bn for schools, but just 1% per-pupil funding rise School funding to rise by around 1% per pupil each year Documents confirm the core schools budget will increase from 拢64.8 billion this year to 拢69.5 billion in 2028, a cash-terms increase of 拢4.7 billion by the end of the spending review period. However, this includes the 拢410 million annual cost of the recently announced extension of free school meals, and the 拢615 million allocated earlier in the spring to contribute to next year鈥檚 4 per cent teacher pay rise. Some of it will also go towards SEND reforms (see point 2 below). Once schools鈥 rising costs are taken into account, the injection works out as a 1.1 per cent average annual real-terms increase over the spending review. However, if you exclude the free school meals cash, which is effectively already ringfenced, the average annual per-pupil funding rise will be 0.9 per cent in real terms. When looking at the schools budget overall, the rise equates to just 0.4 per cent in real-terms over the spending review period. And once the free school meals expansion cash is excluded, 鈥測ou get a real-terms freeze in the budget鈥, said Paul Johnson, director of the Institute of Fiscal Studies. However, pupil numbers overall are now falling, which 鈥渨ould in principle allow a rise in spending per pupil鈥, he added. The government has also described the rise in funding as a 拢2 billion “real-terms” increase, but this is using 2023-24, the year before the election, as a baseline, so is misleading. Unions have welcomed the “small” increase, but said schools will still face difficult decisions in the short term. 2. 鈥 but SEND rise means this could become real-terms freeze The Treasury documents also state that the government has set aside 拢760 million for 鈥渞eform of the SEND system鈥, with most of this falling in the 2026-27 year. This comes from the 拢3.25 billion public services 鈥渢ransformation fund鈥. However, the DfE confirmed to Schools Week that this money is part of the increase in the core schools budget. This, alongside the continued rise in the number of pupils with special needs, could actually mean 鈥渢he best schools could hope for is a real-terms freeze in mainstream school funding per pupil鈥, Luke Sibieta, from the Institute for Fiscal Studies, said. It is also expected that the government will need to provide more funding for its SEND reforms, with councils pushing for high-needs deficits to be wiped. The DfE has said the 拢760 million is just 鈥渙ne part of the investment government will make in SEND reform, not the entirety鈥. 3. Schools white paper in autumn (and not just for SEND) The government will set out its SEND reform plans in a schools white paper, to be published in the autumn. The reforms will 鈥渕ake the system more inclusive and improve outcomes for all children and young people鈥, the documents claimed. 鈥淭he government will also set out further details on supporting local authorities as the government transitions to a reformed system as part of the upcoming local government funding reform consultation,鈥 the Treasury added. But Schools Week also understands that the white paper will be broader than just SEND, and include wider school reforms. 4. More rebuilding cash, and scheme extended … The government has already committed to ramping up the school rebuilding programme, which was slow in its first few years. Spending this year was due to be around 拢1.4 billion. Today鈥檚 documents show government expects to spend around 拢2.4 billion per year for the programme over the spending review period. When the SRP was announced in 2021, it was due to be a 10-year programme to rebuild around 500 schools. The government said today that as part of its 10 year infrastructure strategy, it will 鈥渁lso commit to expand the programme, providing long-term certainty out to 2034-35鈥. However, it has not said how many schools will now be targeted. 5. … and maintenance cash to rise Spending on school maintenance and repairs will also rise by around 拢400 million to around 拢2.3 billion a year by 2029-30. However, the document said this rise was only “in line with inflation”. Meanwhile, around 拢2.6 billion will be spent from 2026鈥27 to 2029-30 to fund 鈥減rovision of mainstream school places needed to meet future demographic needs鈥. In 2021, the – which was focused on places for children with SEND. Sibieta said the increase in school capital spending overall equated to a 7 per cent real-terms increase, which reversed real-terms cuts since 2015. 6. Ofsted funding boost for MAT inspections Despite reports Ofsted was unlikely to secure more cash at the spending review, documents show its budget will rise from just under 拢140 million in 2025-26, to nearly 拢159.4 million in 2026-27. This will fund the inspectorate to 鈥渟upport the government鈥檚 mission to break down barriers to opportunity, including developing and implementing multi-academy trust inspections to increase accountability of MAT leaders鈥, the Treasury documents stated. It鈥檚 not clear exactly how much extra this is, as Ofsted鈥檚 budget was actually 拢148 million in 2024-25, and will also fall back down to 拢153 million in 2028-29. No further details have been provided on what the cash will go towards. But Lynsey Holzer, CEO of The Active Learning Trust, said the choice of funding of projects 鈥渄oesn鈥檛 feel like it hangs together in terms of a well understood strategy from the government鈥. She said it 鈥渨ould seem interesting timing, since we still don鈥檛 have clarity on the new schedule for school inspections, so funding a second stream may be a moot point 7. No more info on 6,500 teachers pledge Labour has pledged to recruit an additional 6,500 specialist teachers to shortage subjects by the end of this Parliament, and recently confirmed this would not include primary teachers. The DfE’s permanent secretary Susan Acland-Hood recently told an education committee 鈥渇ine detail鈥 of the policy would only be announced following the spending review. But the documents mention the pledge only once, stating that the settlement for schools and colleges “supports the government鈥檚 commitment to recruit 6,500 more teachers over the course of this Parliament across secondary schools, further education settings and specialist schools”. 8. Nurseries and libraries cash The government has also confirmed it has allocated 拢370 million across four years to deliver more school-based nurseries in spare primary classrooms. The DfE previously announced 拢37 million for the first tranche of projects. Ministers have also allocated 拢132.5 million of 鈥渄ormant assets鈥 to invest in school libraries and facilities to 鈥渟upport disadvantaged young people to access music, sport, and drama鈥. 9. How did the DfE budget fare? Overall, the DfE鈥檚 total budget will increase to 拢109.2 billion by 2028, 鈥渆quivalent to an annual average real terms increase of 1.5 per cent鈥, the documents show. That 1.5 per cent rise puts the DfE behind most other areas of spending. For example, spending on energy security and net zero is rising by 16 per cent, the law officers’ departments are getting a 6.2 per cent boost and business and trade is getting 5.8 per cent. However, it’s worth pointing out the DfE has a much larger overall budget than many other government departments. Just looking at cash amounts, education got the fourth highest increase of all departments. But, according to the Treasury documents, the DfE’s administration budget will drop by 15 per cent over the spending review period to 拢490 million.