Funding crisis ‘could leave schools unable to open’

Schools are in danger of reaching the point where cuts to staff mean that opening their gates poses health and safety risks, leaders warn
15th May 2025, 4:30pm

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Funding crisis ‘could leave schools unable to open’

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Funding crisis School gates locked

The difficult funding outlook for schools is forcing leaders to put growth plans on hold and some could even face the prospect of not being able to open their doors because of health and safety requirements, a conference heard today.

Speaking at the Schools and Academies Show, Julia Harnden, funding specialist at the Association of School and College Leaders (ASCL), said some of what the union is hearing from members about the cuts they are having to make “really frightens me”.

She said: “I’ve had some conversations recently with members where we’ve been talking about growth plans, and they have been saying to me, because of those factors that are going on, they’re putting their growth plans on hold because they’re concerned about the risks that that might bring to the organisation as it stands now.”

Ms Harnden warned that the sector was heading towards a situation where one of the solutions to cost pressures - school trusts growing in size to allow for economies of scale - “has almost been taken away.”

Funding problems for schools

School business leaders have warned that the financial forecast for next year looks like one of the most challenging in a decade, and the prospect of the teacher pay award being unfunded is already leading to proposals for redundancies in order to balance budgets.

One audience member said that because of the cuts that schools are being forced to make, at some point some will have to think about the health and safety implications of opening.

“If you get rid of too many support staff, say first aid has gone, your site manager has gone, you’ve got teachers already teaching 30-plus kids in a classroom, at some point you would have to decide, can you actually open the doors?” he said.

“I think we are in a dangerous space,” Ms Harnden said, adding that every potential budgeting scenario must ensure that the school is safe and warm, and where this cannot be ensured some may be getting close to not being able to open.

Pauline Aitchison, deputy director at Schools North East and network leader for the National Network of Special Schools for School Business Professionals, said this is a particular issue for special schools.

“Leaders really worry about being able to ensure the safety of children in environments where people can’t afford the right staff, they can’t afford the right resources to be able to support these children,” she said.

Special schools setting deficit budgets

Ms Aitchison warned that some special schools have already had to plan deficit budgets.

This comes as schools are facing a teacher pay rise that is likely to be unfunded. The Department for Education has said schools have £400 million headroom in their budgets for next year, but admitted that this only amounts to covering a 1.3 per cent pay award.

The government initially proposed a 2.8 per cent teacher pay rise, and the teacher pay review body has reportedly recommended a rise of nearly 4 per cent for 2025-26.

Even the biggest academy trusts are struggling with their budgets. The Harris Federation, which has 55 schools, is looking at an £8.25 million shortfall for next year, CEO Sir Dan Moynihan told Tes today.

Ms Harnden said that “resilience is dwindling” in the sector and the uncertainty around things like pay for next year is “really dangerous”, hampering innovation and growth in the sector.

She further warned that ASCL members are having to look at where savings can be made and are finding it harder and harder to do this without affecting teaching and learning.

Some are having to consider reducing additional academic support, she added.

Teaching unions have repeatedly urged the government to announce more funding in the upcoming spending review.

NASUWT members passed a motion at their conference last month calling on the union’s executive to reject any pay award that is not fully funded and move to a ballot on industrial action.

The NEU teaching union has also voted to launch a formal ballot on strike action if the pay offer remains “unacceptable” or if the government does not announce a real-terms funding increase at the June spending review.

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