Government protects education priorities in face of inherited £22 billion blackhole

Chancellor confirms steps to protect education and early years priorities as part of her first Budget

• £1.4 billion allocated for school rebuilding, reaffirming the government’s commitment to improve the school estate.
• Funding will form a packet of measures to break down barriers to opportunity, so every child has the chance to succeed in life.

Improving opportunities for our children and young people will be a key feature of the Chancellor’s first Budget, including £1.4 billion to rebuild crumbling schools.  

The investment to rebuild school buildings, alongside funding for children’s social care, breakfast clubs and early years childcare reflect the government’s commitment to putting education back at the forefront of national life, breaking down the barriers to opportunity for all children. 

The decision to protect education priorities at the Budget comes at a crucial time for the sector with the government inheriting a £22 billion blackhole in the public finances and having to take tough decisions. 

The Chancellor has committed £1.4 billion to ensure the delivery of the existing School Rebuilding Programme, with 50 rebuilds a year delivering on promises made to parents, teachers and local communities that crumbling school buildings will be rebuilt.  

The confirmation of the funding for education follows a 5.5% pay increase for school teachers agreed earlier in the year as the government sets out to reset relationships with the sector.

Chancellor of the Exchequer, Rachel Reeves said:

"This Government’s first Budget will set out how we will fix the foundations of the country. It will mean tough decisions, but also the start of a new chapter for Britain, by growing our economy through investing in our future to rebuild our schools, hospitals and broken roads.

"Protecting funding for education was one of the things I wanted to do first because our children are the future of this country. We might have inherited a mess, but they should not suffer for it."

Secretary of State for Education, Bridget Phillipson said: 

"This is a Budget about fixing the foundations of the country, so there can be no better place to start than the life chances of our children and young people.  

"Our inheritance may be dire, but I will never accept that any child should learn in a crumbling classroom. 

"We are determined to break down those barriers to opportunity, whether it’s brilliant early years, free breakfast clubs or high and rising standards in our schools, this government is putting education back at the forefront of national life."

£1.8 billion has also been confirmed to support the expansion of government-funded childcare, helping deliver the roll-out through local authorities - with a further £15 million of capital funding allocated to expand school-based nurseries. Primary schools can now apply for up to £150,000 of the £15 million, with the first stage of the plan set to support up to 300 new or expanded nurseries across England creating much-needed places in areas most in demand.  

To support parents, particularly those from disadvantaged backgrounds, the government today also confirmed it will triple its investment in breakfast clubs to over £30 million to help ensure children are ready to learn at the start of the school day, and helping drive improvements to behaviour, attendance and attainment. 

Meanwhile to keep more children in stable and loving homes, the new government has also announced £44 million to support kinship and foster carers.  

This will include trialling a new kinship allowance in up to 10 local authorities to test whether paying an allowance to cover certain costs – like supporting a child to settle into a new home with relatives – can help increase the number of children taken in by family members and friends. 

It will also help recruit more foster parents by ensuring that every local authority has access to a regional recruitment hub. These hubs help raise awareness about fostering and offer prospective carers a centralised platform to find information, ask questions and get support from the start of their fostering journey. 

This is expected to generate hundreds of new foster placements, reduce local authorities’ reliance on the expensive residential care market and offer children a stable environment to grow up in. The government has also confirmed its commitment to further reforms to children’s social care in future spending reviews to make sure every child, irrespective of background, has the best start in life.

Chief Executive at Kinship, Dr Lucy Peake said:

"We are pleased that the Government has made a commitment to trialling a new Kinship Allowance so that more children can be raised in well-supported kinship care with family and friends who love them, delivering better outcomes for children and for the public purse than the care system.

"We look forward to further reforms to children’s social care which should ensure that all kinship families get the financial, practical and emotional support they need and deserve."

From: HM Treasury, Department for Education, The Rt Hon Rachel Reeves MP and The Rt Hon Bridget Phillipson MP