Published Wednesday 20th March 2019

The UK Government Department for Education is coming under increased pressure as thousands of head teachers across the UK call for more funding. Research by the Education Policy Institute suggests that the number of schools in England operating at a deficit has increased across the board since 2014, with the percentage of secondary schools in this predicament almost quadrupling over the four years. The campaign group ‘WorthLess?’ has led demands for increased educational funding but a lack of investment is already causing issues for schools, with many looking for cost-saving initiatives.

Has UK Education Funding Decreased?

The issue of low funding for schools has been made more troublesome by the fact that the Department for Education has repeatedly defended its budgets, rejecting the wider stance that investment is declining. The UK Government explain that record levels of investment are going into education, with £43.5bn spent on 0-16 aged pupils over 2018-19 – up from £30.5bn in 2010-11. However, research looking at the figures in real terms paints a more reliable and worrying picture for UK education.

Research by the Institute for Fiscal Studies shows that real term school funding has decreased by around 8% since 2009-10. This takes into account the rising cost of running a school impacted through inflation and also the increased number of pupils, up by approximately 42 children per primary school when compared to 2009. The figures are worse for ages 16-18 education in England, which has seen a 12% fall in real terms since 2011.

Will the UK Education Budgets be Improved?

This lack of funding has led, as mentioned earlier, to the rising number of secondary schools operating in a financial deficit. However, this situation is further clouded by the fact that, as reported by the IFS, there are a large proportion of schools that are carrying forward surpluses. Moreover, the total surplus (£1,794m) dwarves the overall deficit (£233m), showing that there is also an issue with the distribution of funding across the board.

The IFS research indicates that nearly four-fifths of school deficits could be cleared through the accurate distribution of school surpluses. However, it also noted that getting this money back from schools would require a noticeable shift in policy from a government that has appeared unwilling to budge, alongside other administrative challenges.

Public protests over school funding have increased the pressure on the UK Government over recent months. However, the extra £750m added to the school budget system ahead of the upcoming spending review is a drop in the ocean, especially in real terms. Whilst a spokesman has said that Mr Hinds, the Government’s Education Secretary, is “putting a strong case to the Treasury ahead of the next spending review,” it remains to be seen whether the situation for UK schools will improve going forward.

What Can UK Schools Do to Reduce Costs?

With seemingly little help coming from the Department for Education, schools are being tasked with finding their own methods to make ends meet. Unfortunately, for many schools the size of the deficit has led to a reduction in teaching staff, particularly specialists. Many have reported a decrease in funding for SEND students, with schools unable to offer the right support to the most vulnerable students. The National Deaf Children’s Society has also warned of an impending crisis, with the number of specialist teachers falling by 15% over the last seven years. There have also been numerous cases across the teaching spectrum of new educators dropping out of the system due to excessive workloads.

As mentioned, the size of deficits being faced by some schools means that, for many, this is an unavoidable consequence. In this scenario, pressure mounts on the UK Government to assist these schools and help deliver a better education service. However, there are many other areas of the school operation that could present cost-saving opportunities to institutions in need.

One of the most effective ways of reducing school operation costs is to evaluate your current suppliers. This could include stationery costs, printing, utilities, external catering services and much more. With the help of school cost reduction services like those offered by ERA, you will be able to discover new funds through effective supply chain management.

Here at ERA, we have experience working with a range of publicly-funded institutions and offer a risk-free procurement program. By working with your school, we can create a smarter procurement strategy for the long-term whilst only getting paid from the money that was already being spent. So, if you are interested in the cost savings we could create for your school, college, MAT or other educational institutes, why not get in contact with our friendly team today?