Question to the Department for Education:

To ask the Secretary of State for Education, what steps she is taking to ensure that funding for teacher pay increases does not result in reductions to essential school services.

The department is providing schools with £615 million in additional funding in the 2025/26 financial year to support them with overall costs, including the costs of the 4% school teacher pay award and the 3.2% local government support staff pay offer in 2025/26. This additional increase in funding means that the overall core schools budget (CSB) will total £65.3 billion in 2025/26 compared to £61.6 billion in 2024/25. This is a year-on-year increase of £3.7 billion.

Schools will, on average, be expected to fund approximately the first 1 percentage point of the teacher and support staff pay awards through improved productivity and smarter spending. That is equivalent to about 0.8% of a school’s overall budget, on average. The pay award will be funded above this level from new and existing funding increases from the government. The department believes that schools can make productivity gains. We know that this is challenging, but this is in line with asks to the rest of the public sector to drive better value from existing budgets to help rebuild public services.

Schools are already making savings and bringing core operating costs down. For example, the 400 schools who participated in the department’s new energy for schools offer will save 36% on average compared to their previous contracts, which will free up vital funding to deliver for children and young people. The department is also making plans to secure better banking solutions for schools, getting them better returns on their cash balances. We will continue to provide schools with additional tools, guidance and support. Those best placed to identify ways for individual schools to operate more efficiently will be headteachers and school business managers.

Budgets for 2026/27 are still to be agreed and this includes the 2026/27 CSB. This will be subject to the multi-year spending review, which we expect to be concluded in June this year. The department will be taking account of the impact of the full year's costs of the teacher pay award.