The Autumn 2025 Budget has had somewhat of a mixed reaction in the school community. While there have been many major changes that could drastically increase the amount of funding schools receive in certain areas, there isn’t much clarity about which schools could potentially receive the funding boost, not to mention the fact that the budget doesn’t allow for an increase in core school funding.
As of writing, the Autumn 2025 Budget has been unveiled for at least a month, which means we can now offer some insight into how the budget will impact schools.
Overview of the Autumn 2025 Budget
The Autumn Budget 2025 was announced on 25th November 2025. While there was an expectation that a significant portion would be dedicated to education funding, many of the policies that were introduced remain fairly unexplained, and likely will until the new year.
Education stakeholders have been watching this budget closely because, like most budgets, there will be a direct impact on how much funding a school can receive. The government had also pledged a significant investment in schooling, although it remains to be seen whether the changes proposed by the budget will have a real impact. Of course, in the case of schools, many are craving significant extra resources, since many schools are generating significant amounts of debt.
Major Funding Changes for Schools
There has been one major funding change for schools, and one non-change that is causing a lot of schools to become quite worried about their future.
Central Government Taking Over SEND Funding (from 2028–29)
Perhaps the biggest change in the budget is the central government now taking over SEND funding, something which was previously the responsibility of local authorities. Local authorities are quite pleased by the announcement, since many of them were struggling to fund SEND themselves. The government has allocated £6 billion to SEND for the transition in 2028-2029, with budgeting set to rise further in the following years. This at the cost of many of the free schools that were supposed to be built.
This does, potentially, mean that school budgets will be slightly better for helping to fund SEND. However, we cannot know for certain since the white paper on the impact of the government taking over SEND has yet to be released.
Unfortunately, many people do not believe that this is the right move. SEND will take up a healthy amount of the education budget, and many people fear this could result in a decrease in overall school funding as the years go on. Although once again, this is something that remains to be seen. However, it is somewhat suspicious that the government keeps delaying its report on this.
No Significant Increase in Core School Funding
Unfortunately, there is no significant increase in school funding. This has caused concerns amongst unions and school leaders, since many schools are already struggling with funding themselves. This is all thanks to inflation, increased running costs, and higher pay demands.
This does mean that some schools, particularly the more under-funded ones, will need to tighten their belts in some areas, or perhaps look for alternative funding options to balance the books a little. Even then, some schools will struggle which could have a long-term impact on the students. Hopefully, this is something that will be considered in the next budget.
New Education Investments Announced
The government has announced funding in a few core areas. Much of this is to help improve literacy rates among children, while also boosting learning opportunities.
£5 Million for Secondary School Libraries
£5 million will be set aside for improvements to secondary school libraries. This, on average, means £1,400 per secondary school in the UK, although we imagine that the funding won’t be evenly spread among schools. We expect schools with seriously lacking library facilities to see the most benefit from the policy.
Bear in mind that this is an extension of a previous policy from the government. By 2029, every primary school in the UK will have a library available. This is thanks to £10 million in funding. Although the size of the libraries is likely to be quite limited.
The policy should lead to improved literacy and access to books among students, particularly among students who may not be within easy reach of a public library.
£18 Million for Up to 200 Playground Upgrades
The budget sets aside £18 million for 200 playground upgrades around the United Kingdom. However, it is worth noting that we currently have no idea where those playgrounds are, nor whether schools will see much benefit from them.
That being said, the schools that do benefit from this policy could see benefits to outdoor learning and physical activity among their students. This can mean more opportunities to educate their students, while also letting students blow off a little bit of steam during their breaks.
We will need to wait for the government to see how funds will be allocated here, but some schools with limited outdoor play areas may be able to apply for some funding.
Impact on Students and Families
An impact that many parents will feel is the scrapping of the two-child benefit limit. This could increase the amount of funds that families with over two children have at their disposal. The hope is that this could significantly reduce child poverty.
While this cash won’t be funnelled directly to schools, schools should be able to see some benefit from the policy. There may be an increase in student attendance and well-being. This could directly lead to improved learning outcomes.
What This Means for School Leaders
The lack of a significant increase in core school funding is likely to cause issues for many schools, which may result in some schools looking for ways to cut costs between 2026 and 2029. While there have been mild funding increases in libraries and playgrounds, it is still unknown who will receive the cash. This will make managing budgets even harder, especially as real-world pressures continue to take hold.
While some are praising SEND reform, which could lead to an easing of pressure on local authorities, there is no indication about how it will work yet. While we will likely get an update in the early part of 2026, a lot of things could still change. This means that schools are currently unable to play for SEND reform.
How the Autumn 2025 Budget Will Affect Schools
Local authorities are likely the clear winners in the autumn 2025 budget, since SEND will now be taken off their hands. Schools that have not received much funding for their libraries, or are operating in areas with heavy poverty, may also see some benefit.
The non-increase of core school funding will likely impact all schools in a negative way, though. Budgets are already tight enough, unfortunately.
In the short term, we will likely see schools try to trim their budgets slightly, especially amidst uncertainty about how the SEND reform will pan out. However, the budget, if it works, does have good long-term prospects. Those students who fall under SEND could potentially receive increased funding for their education. The investment in libraries could also boost literacy rates. The scrapping of the two-child cap on benefits could also lead to better educational outcomes. It could be years before we see any real effect, though.
The next spending review will, hopefully, allocate more funds to schools. However, it is unknown whether there will be any significant increase. The fact that the government is not increasing now doesn’t really bode well. In fact, if they take over SEND, we could see a decrease in budgets allocated to schools, although we hope it doesn’t come to that.
Get in touch to learn about our CMS, website design, or marketing services.
