Research by the School Cuts coalition – run by education unions – shows 76% of primary and 94% of secondary schools will not be able to afford their costs in the next financial year

The vast majority of schools face funding cuts next year due to a £700million gap, education unions warn.

Research by the School Cuts coalition shows 76% of primary and 94% of secondary schools will not be able to afford their costs in the next financial year.

The group – run by unions including the National Education Union (NEU) – says school costs are set to rise by 3.4% in 2025-26 overall as funding increases by just 2.2%. They warn this means a funding gap of £700million the government must now plug.

It comes after ministers recommended a 2.8% pay rise for teachers – but with schools expected to use existing budgets to pay for the increase, or make savings elsewhere. Unions have already reacted with anger at the pay award with the NEU announcing plans for an indicative strike ballot in March.

Daniel Kebede, general secretary of the NEU, said: “At the last election, people voted in the new Labour Government on a promise of change. It is time for the government to deliver on that promise and that must start with prioritising school funding. Schools and colleges simply do not have the capacity to fund pay increases.

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“Fourteen years of funding cuts have left budgets stripped to the bone, impacting on the education of every child. We cannot see another generation of children and young people failed. Urgent investment in our schools and colleges must be a priority for this Government.”

Paul Whiteman, General Secretary of the National Association of Head Teachers, said: “It is becoming increasingly clear that school funding will not keep pace with growing costs next year. “

He added: “Schools have already had to make repeated cuts after more than a decade of austerity under the previous government and many parents will be well aware of the relentless budget pressures that their children’s schools have faced.

“School leaders simply can’t make any more cuts without directly harming pupils’ education. While we recognise the incredibly difficult financial inheritance this government is dealing with, children and young people’s education should not suffer as a result.”

A Department for Education spokeswoman said: “The Budget delivered on the government’s commitment to put education back at the forefront of national life, protecting key education priorities including core funding for schools. Despite the challenging economic context, we are putting a further £2.3bn into schools’ budgets, with £1 billion for children and young people with high needs.

“We recognise the challenges schools are facing, but the £22 billion black hole the government inherited means that fixing the foundations of the economy will take time, and tough decisions are needed across the public sector to get our finances back under control.

“That includes in schools, where we will support leaders to use funding as efficiently as possible, while continuing to deliver better life chances for children and young people across the country.”

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