Schools in England are facing “death by a thousand cuts”, headteachers have said, after a leading economics thinktank said rising costs are likely to outstrip funding in the coming year, despite recent injections of additional money.
Without more ambitious government investment in education, the Association of School and College Leaders (ASCL) said there could be yet more cuts in England’s already depleted schools, reducing pastoral support and curriculum choice, while class sizes are likely to grow.
The intervention from headteachers followed the publication on Wednesday of a report by the Institute for Fiscal Studies (IFS), which estimates 2.8% growth (in cash terms) in mainstream school funding in 2025-26 will fall short of an expected 3.6% rise in costs, caused mainly by promised teacher pay rises.
“This report reveals the reality that is facing many schools and colleges – yet another round of cutbacks,” said Julie McCulloch, ASCL’s director of policy. “It will inevitably mean further reductions to pastoral support, curriculum options and classroom resources. It is also likely that in many cases class sizes will increase.
“Schools and colleges have been expected to absorb relentless financial pressures over the past 15 years, and they have done an incredible job in minimising the impact on students. But we cannot go on like this. It is death by a thousand cuts. The government must recognise the importance of improved investment in education.”
In its annual report on education spending in England, the IFS said total school spending in England had grown by about £8bn over the past five years, reversing earlier cuts and leading to an 11% real-terms growth in school spending per pupil.
More than half of that however has been absorbed by planned spending on high needs provision, which is expected to grow by £2.3bn over the next two years, far outweighing any potential savings from a projected 2% fall in pupil numbers the government might have hoped for.
Luke Sibieta, IFS research fellow and one of the author’s of the report, said the government’s coming spending review would involve difficult choices on education funding in England. “A very tight picture on the public finances means that most departments, including education, will probably need to make savings. Working out exactly how and where is much easier said than done.”
Historically colleges and sixth forms have been particularly hard hit, and even with recent funding increases they remain so. According to the college funding per student aged 16 to 18 in 2025 will still be about 11% below 2010 levels, and about 23% lower for school sixth forms.
Paul Whiteman, general secretary of the NAHT school leaders’ union, said some schools are already facing real difficulties in making their budgets add up and having already cut operations to the bone, school leaders are worried what lies ahead.
“It’s vital that this is recognised and addressed in the spending review if schools are to be spared further unpalatable decisions like cutting staff and curriculum resources which make it harder for them to offer children a first-rate education,” Whiteman said.
The IFS also said students in England are likely to face further tuition fee increases, as universities struggle to meet increased staff costs at the same time as income from reduced international student recruitment continues to fall. Unlike schools and colleges, universities will be not be compensated for the rise in employer national insurance contributions, announced in last year’s budget.
To ease the pressure in the sector, the government announced in November that tuition fees would go up for the first time in eight years in line with inflation, taking annual fees up to £9,535. It was, the IFS said, “a brief reprieve for university finances, and further tuition fee rises seem likely.”
A Department for Education spokesperson said: “One of the missions of our plan for change is to give children the best start to life. This was built upon the steps set out at the budget which increased school funding to almost £63.9bn in financial year 2025-26, including £1bn for children and young people with high needs.
“We are determined to fix the foundations of the education system that we inherited and will work with schools and local authorities to ensure there is a fair education funding system that directs public money to where it is needed to help children achieve and thrive.”