Budget 2024: £2.3bn Increase for Schools and £1bn for SEND

Chancellor Rachel Reeves delivers first Labour budget in 14 years

In her first budget as chancellor, Rachel Reeves has announced a substantial uplift in education funding, with a promise to boost the core schools budget by £2.3 billion next year.

This increase is aimed at supporting the Labour government’s commitment to hiring thousands more teachers in key subject areas. The budget also outlines a separate £1 billion allocation to reform and enhance special educational needs and disabilities (SEND) provision, a move Reeves described as essential to improving outcomes for the UK’s most vulnerable children.

However, scrutiny of the budget documents reveals that £1 billion of the SEND uplift will come from the £2.3 billion allocated to the overall schools budget, raising questions about how these funds will be balanced across general and specialist education demands.

Key Highlights of Education Funding in Budget 2024

£2.3 Billion Increase for Schools

• Reeves stated that the £2.3 billion increase would help deliver Labour's pledge to hire thousands of additional teachers, particularly in high-demand subject areas. According to Treasury documents, this injection of funds is expected to increase per-pupil funding in real terms, although the precise impact on schools’ budgets remains to be clarified, especially given additional costs they are facing.

£1 Billion for SEND Provision Reform

• With the growing need for sustainable and effective SEND services, the chancellor dedicated £1 billion specifically to support ongoing SEND reforms. Reeves called the allocation a “6 per cent real-terms increase from this year,” aimed at delivering essential improvements in the educational experience for pupils with special needs while ensuring financial sustainability. Despite the targeted funding, it is notable that the SEND budget will be funded from the broader schools budget increase, prompting some concerns about whether general education funding may be stretched.

National Insurance Contribution Uncertainty

• The budget does not clarify whether schools will receive additional funding to address the anticipated rise in employers’ National Insurance contributions, which are set to increase by 1.2 percentage points. With schools facing mounting financial pressures from rising operational costs, any additional burden from increased National Insurance contributions may further strain budgets.

Major Investment in School Infrastructure

• Reeves also outlined a significant £6.7 billion capital investment for the Department for Education next year, representing a 19 per cent real-terms increase from current levels. This includes an already-announced £1.4 billion earmarked for the ongoing school rebuilding programme, which aims to modernize and repair aging school facilities. An additional £2.1 billion will be allocated to school maintenance, marking a £300 million increase from this year.

Reactions and Analysis

Education leaders have responded with cautious optimism, welcoming the boost in funding but seeking greater clarity on how these funds will be distributed and whether additional support will be provided for rising costs, including the increased National Insurance burden.

There is concern that funding originally intended for broad educational improvements may be diverted to cover critical but underfunded SEND needs.

Labour’s ambitious education funding proposals align with its goal of reversing years of austerity-driven budget constraints in education. With the new funding earmarked to support both general and special education sectors, the government has taken steps toward addressing critical gaps in teacher staffing and SEND provisions. However, the interdependency of the funding streams may raise practical challenges as schools strive to balance immediate needs with the government’s broader strategic aims for the education sector.

The full impact of these measures will depend on how these allocations translate into real-term benefits across both mainstream and specialist educational services in the coming years.

As further budget details emerge, schools, parents, and policymakers will be watching closely to assess the implementation and tangible effects of Labour’s first education-focused budget in over a decade.