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Schools Budget and spending review 2021




The government has released the spending review for the next 3 years and billions of pounds of extra funding going to schools! Here's what you as a school need to know:


  • £4.7billion extra school funding.


Treasury documents confirm that the spending review is allocating an additional £4.7 billion for the core schools budget in England.


This is “over and above” the spending commitments made in 2019, and the Treasury said this would be “broadly equivalent to a cash increase of over £1,500 per pupil by 2024-25 compared to 2019-20″.


According to the documents, the core schools budget will increase from £49.8 billion this year to £56.8 billion in 2024-25. This equates to an average annual real-terms rise of 2.5 per cent from 2019 to 2024.



  • However, this will have to cover pay rises.


Sunak confirmed the end of the public sector pay freeze.

But Treasury document states the extra funding today will go towards “supporting delivery” of its pledge to raise new teacher starting salaries to £30,000.


Treasury has been asked whether today’s funding settlement is also expected to cover any future teacher pay rises. If so, it would mean a big chunk of the extra cash announced today will be wiped out by pay increases.


The government said public sector workers will see “pay rises over the next three years as the recovery in the economy and labour market allows a return to a normal pay-setting process”.


Last year’s spending review froze pay for all public sector workers earning more than £24,000, affecting most teachers.


But to ensure the “fairness and the sustainability of the public finances”, public sector pay growth over the next three years “should retain broad parity with the private sector and continue to be affordable”.


  • Extra funding ALSO includes NI rise compensation.


In the small print of the document, the government reveals the £4.7 billion funding increase “includes public sector compensation for employer costs of Health and Social Care Levy”.


This follows the announcement earlier this year that national insurance contributions will rise to fund health and social care reforms.


The government said at the time it would “compensate” public sector employers for their rise in contributions.


  • £1bn more for schools catch-up...


Also included in the spending review is an additional £1.8 billion for education recovery. This is on top of the £3.1 billion already announced.


The new commitment includes a £1 billion “recovery premium” for the next two academic years “to help schools to deliver evidence-based approaches to support the most disadvantaged pupils”.