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Shaping education funding for the challenges to come

The overall level of education funding in England through to 2028-29 was set as part of last year’s spending review. Under current plans, the Department for Education is due to see 1% per year real-terms increase in day-to-day funding for education in England between 2025-26 and 2028-29. This increase is currently in line with overall plans for day-to-day public service spending across government as a whole, though plans can clearly be topped up and revised over time. Within this funding envelope, the Department for Education must meet a number of major challenges. It is leading the government’s ‘Opportunity Mission’ to break down barriers between family background and future success. There are specific objectives to increase support in the early years, narrow inequalities in the school system and improve skills to increase economic growth. The government has already published a white paper setting out objectives and goals for the post-16 education system. It is also due to publish a schools white paper in early 2026, which is likely to include major reforms to the system of support for special educational needs and disabilities. With funding already now determined through to 2027-28, how can the government allocate and reform education funding in England to best meet its long list objectives and challenges? In this year’s IFS annual report on education spending in England, we analysed how decisions in the 2025 Spending Review are likely to affect spending levels across different stages of education in England. We also analysed the key funding challenges and risks across each sector. At the event, IFS researchers began by setting out the main conclusions of this year’s annual report. A panel of expert speakers (Philip Augar and Leona Cruddas) then provided their views on how education funding can best be allocated to meet the government’s wide-ranging challenges and objectives. 0:00 - Introduction 2:19 - Josh Hillman, Nuffield Foundation 7:52 - Overview of spending 11:17 - Schools 22:30 - Early years 32:52 - Further education and skills 44:16 - Higher education 57:34 - Response from Philip Augar 1:02:59 - Response from Leora Cruddas 1:07:08 - Q&A