School funding crisis risks doing 'enormous damage' to children's education, union warns

Failure to address school funding shortfalls risks inflicting "enormous damage" on children’s education, a prominent school leaders' union has warned.

Declining pupil numbers, inflationary cost pressures and "insufficient" central budgets are compelling schools to reduce teaching and support roles, while others have been forced to close or consolidate.

A survey carried out by the National Association of Head Teachers (NAHT), which polled more than 5,300 of its members in England, indicates that 35 per cent of school leaders are aware of discussions or consultations regarding potential restructures or redundancies.

When asked to identify the primary drivers behind prospective job cuts, 78 per cent cited "insufficient funding", while 56 per cent pointed to "falling rolls".

Paul Whiteman, general secretary of the NAHT, explained that shrinking income linked to lower pupil numbers makes it "difficult" for headteachers to preserve existing staffing levels. He noted that such constraints compromise the breadth of the curriculum, threaten school viability, and have already triggered closures and mergers.

The June survey revealed that 92 per cent of headteachers surveyed felt their school's financial situation had deteriorated over the previous 12 months. Ahead of the upcoming autumn Budget, the NAHT is urging the Government to deliver immediate additional investment.

Mr Whiteman said: "It is deeply worrying that we are hearing of schools being forced to cut teachers, teaching assistants, and leadership teams, and leave posts vacant. This can cause enormous damage to children’s learning.

"It can affect pupil-staff ratios and lead to bigger class sizes, making it harder to ensure children – including those who need support the most – get the attention they deserve.

"It can sometimes result in mixed year groups in smaller primary schools, and lead to non-subject specialists teaching in secondaries.

"Where schools have to close and pupils are moved elsewhere this can cause enormous disruption to their education."

Data from the report shows that around one in seven (14 per cent) NAHT members reported formal redundancy or restructure consultations at their school or trust. A further 7 per cent cited informal talks, while 15 per cent noted ongoing internal discussions.

Ed Powe, headteacher at Staverton CE VC Primary School in Wiltshire, said: "As a headteacher, the last thing you ever want to do is make members of your school community redundant.

"These are dedicated, experienced people who give so much to the children and families they serve. Yet I’m currently having to lead my school through exactly that process.

"We’re doing everything we can to protect the quality of education, but the financial reality facing schools means we’re being forced to make decisions that no school leader wants to make. Falling pupil numbers, rising costs and insufficient funding have left us with very few options."

David Huntingford, headteacher at William Ford CE Junior School in Dagenham, said: "As the head of a school in financial deficit, money is the issue that keeps me awake at night.

"In the six years I’ve been in post I’ve led four restructures, every one of them because the money simply isn’t there. Our building needs repairs that we can’t afford to make.

"With the level of special educational needs we have, there are times the school feels understaffed, yet we can’t afford to do anything about it. If anything, we’re being encouraged to cut staff further just to reach a balanced budget."

It follows analysis published last month by the Institute for Fiscal Studies (IFS), which estimated real-terms school funding per pupil in England would grow by 9 per cent between 2025–26 and 2028–29.

However, the report highlighted that escalating demand for special educational needs and disabilities (Send) provision will "continue to absorb a substantial share" of additional resources. The IFS added that sharper-than-expected drops in pupil numbers could necessitate school closures "to deliver savings".

Mr Whiteman said: "While there have been welcome funding uplifts since the last general election, much of this has been swallowed up by increasing costs and demands.

"Schools will also need significantly more resources to effectively implement much-needed reforms to the Send system and curriculum and assessment."

A Department for Education (DfE) spokesperson said: “We recognise the challenges facing school leaders as pupil numbers change. That’s why we’re supporting areas to plan ahead and make the best use of their school estate.

“We’re backing this with record investment, including a £2.3 billion increase to the core schools budget in 2026–27, alongside £400 million to create tens of thousands of nursery places and £3.7 billion for new Send provision.

“Every school’s circumstances is different, but we are continuing to work with them to seize every opportunity to help them maximise value from their budgets, so they can make savings on energy, recruitment and banking, reinvesting every penny in delivering opportunities for young people.”