Leadership

2020 Annual Report on Education Spending in England: Schools

School spending per pupil in England fell by 9% in real terms between 2009–10 and 2019–20. This represents the largest cut in over 40 years.

Schools serving more deprived pupils in England have already seen the largest falls in spending per pupil over the last decade, according to this report by the lnstitute for Fiscal Studies.

School spending per pupil in England fell by 9% in real terms between 2009–10 and 2019–20. This represents the largest cut in over 40 years, though these cuts come on the back of a significant increase in spending per pupil of over 60% during the 2000s. Recent cuts have mainly been driven by cuts to school sixth-form funding and big reductions in the spending role of local authorities. Cuts look similar whether we compare against general inflation or school-specific cost changes over the last decade.

The government has allocated an extra £7.1 billion for schools in England through to 2022–23. This will increase spending per pupil by 9% in real terms between 2019–20 and 2022–23 (as measured against expected general inflation) and near enough reverse the cuts of the 2010s. If we account for expected increases in teacher pay, the real-terms increase in spending per pupil will be lower, at 6%. In either case, school spending per pupil in 2022–23 is set to be no higher in real terms than in 2009–10.

Secondary school spending per pupil fell by 9% in real terms between 2009–10 and 2019–20, partly reflecting cuts of over 25% to sixth-form funding per student. In contrast, primary school spending per pupil has grown by 4%. As a result, the per-pupil funding difference between secondary and primary schools fell from 30% at the end of the 2000s to 16% in 2019–20. This continues a long-run trend, with this funding difference already down from over 50% during the 1980s. Whilst empirical evidence shows high benefits to spending at younger ages, it is not clear evidence supports such a dramatic shift.

This report analyses the extent to which plans are targeted at the likely challenges resulting from the COVID-19 pandemic, as well as pre-existing challenges such as the teacher labour market and the state of school buildings.

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