Schools at Financial Breaking Point 2026

England Cannot Afford to Let Education Run on Empty.

Part 1: Funding Crisis Deepens

Head teachers across England are warning that schools are being pushed towards financial breaking point as rising costs continue to outpace funding increases.

In West Sussex, it was reported that school leaders recently warned that the current funding formula is no longer sustainable for schools operating in one of the country’s most expensive counties. Secondary schools in the county are expected to receive £7,125.58 per pupil in 2026/27, below both the England average of £7,679.90 and the South East average of £7,360.89. Primary schools are also below average, receiving £5,511.74 per pupil compared with a national average of £5,931.78.

The issue is not confined to one county.

Across England, schools face rising energy bills, staffing costs, special educational needs pressures and growing maintenance demands. According to the Institute for Fiscal Studies, total school spending per pupil rose by around 10% in real terms between 2019 and 2025. However, mainstream school spending increased by only around 5% once soaring Special Educational Needs and Disability (SEND) costs were taken into account.

That distinction matters because schools are increasingly finding that higher headline funding does not translate into greater financial flexibility.

Sector analysis by Schools Week has shown increasing numbers of schools moving into deficit budgets as costs continue to rise. At the same time, the National Audit Office has warned that falling pupil numbers could create further instability because most school funding follows the pupil.

Recruitment and retention are also becoming major concerns, particularly in high-cost parts of England.

In areas such as Mid Sussex and Chichester, average house prices are now many times higher than average salaries, while private rents continue to rise steadily. School leaders argue that younger teachers and support staff are increasingly unable to afford to live near the schools where they work.

The pressure facing schools was further highlighted after the Department for Education issued a notice to improve to Supporting Achievement and Nurturing Development (SAND) Academies Trust in Gloucestershire over concerns about financial management and governance. While the trust says schools will continue operating normally, the case demonstrates the wider fragility developing across parts of the education system.

Stephen Morris of the Workers of England Union said:

“Teachers, support staff and school leaders are doing everything possible to protect standards for pupils, but they are being asked to carry impossible financial pressures year after year. Schools cannot continue absorbing rising energy costs, staffing pressures and SEND demands without long-term investment. “Education is one of the most important investments this country can make. If schools are forced to cut staffing, reduce subjects or scale back support for vulnerable pupils, it is children, families and local communities who ultimately pay the price.”

The Workers of England Union says England needs a funding settlement that reflects the true cost of delivering education, particularly in high-cost areas where recruitment pressures are becoming severe.

Without long-term planning and sustained investment, many school leaders fear the financial pressure now facing schools will only deepen further.

Stephen Morris
General Secretary 
Workers of England Union

References

(Department for Education, School funding statistics 2025/26 and 2026/27, Institute for Fiscal Studies, Annual report on education spending in England 2025/26, Institute for Fiscal Studies, Rapid rises in SEND and childcare spending are reshaping education spending in England, National Audit Office, Responding to changing demand for school places, Schools Week, analysis of school deficits and funding pressures, Department for Education, Notice to improve: SAND Academies Trust and different media outlets)