NFER comment on the DfE's Dedicated Schools Grant allocations 2025-26 written statement

“The DfE confirming the allocations of the core schools budget for the 2025/26 financial year is welcome, as schools need as much time as possible to plan for the year ahead.

“Despite this new funding, DfE recently said they expect most schools will need to find new efficiencies to balance their budgets if teachers’ pay increases by 2.8 per cent in September 2025, as has been suggested by the department. This will concern many school leaders, particularly given the rising proportions of local authority schools that are already in deficit.

“Schools will also face additional costs from April 2025 due to the increase in employer National Insurance contributions. DfE promised that funding to compensate employers for these costs is coming, but schools are waiting to find out the details. It is important these additional costs are covered in full, for all schools.”