Budget 2024: Key Highlights for Education
The Autumn Budget 2024 has several key spending commitments relating to education, childcare, and special educational needs and disabilities (SEND).
Early years and childcare
The government has committed an additional £1.8 billion to early years education, bringing the total investment to over £8 billion. This funding will support the expansion of funded childcare hours for children from nine months to four years old. Additionally, £15 million will be allocated to establish 3,000 school-based nurseries, with schools able to bid for up to £150,000 to expand or open new nurseries.
School funding and SEND
Schools will see a funding increase of £2.3 billion next year, with £1 billion specifically for high needs. The remaining funds will help cover the 5.5% pay award for teachers and other pay awards in 2025-26.
School and college infrastructure
An additional £1.4 billion has been allocated to the School Rebuilding Programme, which the government says will fund 100 new rebuilding projects next year. A further £2.1 billion will be used to maintain and improve school buildings, while colleges will receive £300 million to enhance their facilities.
FE and apprenticeships
The Budget includes an extra £300 million for FE alongside a £40 million investment to transform the Apprenticeship Levy into a more flexible Growth and Skills Levy. This is designed to support the delivery of new foundation and shorter apprenticeships in key sectors.
Support for breakfast clubs and social care
Investment in breakfast clubs will increase to over £30 million, supporting both existing and new free breakfast clubs in schools. Additionally, £44 million will be allocated to children's social care, including support for kinship and foster carers.
VAT on private schools
From January 2025, private school fees will be subject to VAT, with the removal of charitable business rate relief from April 2025. This measure is expected to raise £1.725 billion annually, which will be reinvested in public services, including education.
NAO calls for urgent whole-system reform of SEND provision
The National Audit Office (NAO) has issued a stark warning about the financial sustainability of the Special Educational Needs and Disabilities (SEND) system in England, calling for comprehensive reforms. It says that the current system is at risk of financial collapse, with two-fifths of councils potentially facing bankruptcy by March 2026 due to the escalating costs of SEND.
The NAO's report highlights that government interventions, such as the "safety valve" bailout scheme, have not been effective in achieving the necessary savings. The watchdog predicts that high needs budget pressures will increase by £3.9 billion in the coming years, while council deficits could reach nearly £5 billion.
Despite significant spending, outcomes for young people with SEND have not improved. Only 69% of these young people progress to further education, employment, or apprenticeships after leaving school, compared to 85% of their peers without SEND. The NAO emphasises the need for a cohesive, whole-system approach to make better use of the £10 billion spent annually on SEND provision.
The report sets out nine recommendations, including:
- urging the government to develop a long-term plan for inclusivity in mainstream education;
- addressing the root causes behind the rising numbers of SEND and Education, Health and Care Plans (EHCPs); and
- calling for better data utilisation to understand local demand and improve service provision.
Education Secretary Bridget Phillipson acknowledged the crisis and says the government is committed to making long-term reforms.
School smartphone ban dropped
Plans to ban on smartphones in schools have been abandoned. Labour MP Josh MacAlister, recently introduced the Safer Phones Bill, but has removed the smartphone ban from the Bill after the government indicated it would not support these measures. The government says that headteachers already possess the authority to ban smartphones in schools, rendering additional legislation unnecessary.
The Bill seeks to raise the age of "internet adulthood" from 13 to 16 and to strengthen Ofcom's powers to protect children from addictive apps. It has passed its first reading in Parliament and will be debated again in March 2025.
Government launches £15 Million fund for school-based nurseries
The UK Government has announced the launch of a £15 million fund aimed at establishing up to 300 new or expanded school-based nurseries across England. This initiative, part of the government's opportunity mission, seeks to provide accessible, affordable, and high-quality early years education to thousands of families.
Primary schools can now apply for up to £150,000 in capital funding to support the creation or expansion of nurseries. This first round of funding is a significant step towards the government's broader goal of delivering 3,000 school-based nurseries and helping to bridge gaps in early years provision, particularly in disadvantaged areas.
The government plans to allocate funding to successful schools by spring 2025, with the first cohort of new nursery places expected to be available by September 2025. Schools interested in future phases of the programme are encouraged to register their interest to help assess and meet local demand.
The Department for Education's latest projections suggest that England will need around 70,000 additional nursery places and 35,000 early years educators to meet the demand for the expanded 30 hours of government-funded childcare starting next September.
Sixth form college teachers vote to go on strike
Teachers in sixth form colleges across England have voted overwhelmingly in favour of strike action in a dispute over pay and funding. The National Education Union (NEU) announced that 97% of its members who participated in the ballot supported the strike, with a turnout of 62% across 40 colleges.
The dispute arises from the government's decision to award a 5.5% pay award to schools and academised sixth form colleges but not to other colleges.
Daniel Kebede, General Secretary of the NEU, criticised the government's approach, stating that the additional funding announced for FE should be allocated to staff pay. He emphasised the union's commitment to securing a fair pay award for all sixth form college teachers and called for urgent clarification from the Department for Education on the use of these funds.
The NEU's strong ballot result highlights the frustration among teachers and their readiness to take industrial action if the issue is not resolved.
Number of severely absent school children 160% higher than before COVID
The number of children in England missing at least half of their school sessions has surged by 160% compared to pre-pandemic levels, according to recent data published by the Centre for Social Justice.
In the spring term of 2024, 157,038 children were classified as "severely absent," marking a 12.4% increase from the same period in 2023 and a huge increase from pre-covid figures of 60,244 in Autumn 2019. "Severely absent" refers to students missing 50% or more of their school sessions.
Additionally, one in five children was "persistently absent" this spring, missing 10% or more of school sessions, which is a 5.7% increase from last year and 67.8% higher than pre-pandemic levels.
Education experts and school leaders attribute this rise to various factors, including parental attitudes towards school attendance and broader social issues.
Employment Rights Bill: government publishes impact assessments and economic analysis
The government has published a number of impact assessments in respect of the Employment Rights Bill. The main economic analysis suggests that the reforms could cost organisations up to £5 billion a year.
The reforms are likely to be more disruptive for organisations relying on flexible contracts in low-paying sectors, with costs proportionately higher for SMEs because of the fixed administrative and compliance burdens. Excluding the reforms to the adult social care sector, the zero-hours reforms are stated to be the biggest cost. However, the analysis also suggests that the reforms will have a positive impact on growth, raise living standards and benefit more than ten million workers. That said, the net overall effect on the economy is reported to be minimal.
The economic analysis acknowledges that there will be an impact on the current employment tribunal system, noting that the reforms could increase the number of claims being dealt with by ACAS and employment tribunals by around 15% at a time when tribunals are already struggling to cope with demand.
Employment Bill: government publishes factsheets
The government has also published 10 factsheets addressing the following matters included in the Bill:
- Overview of the Bill
- Unfair dismissal
- Trade unions
- SSP
- Fire and rehire
- Bereavement, paternity and unpaid parental leave
- Zero hours contracts
- The Fair Work Agency
- The School Support Staff Negotiating Body
- The Adult Social Care Negotiating Body
Each of the factsheets takes the same format, with sections setting out the current policy or legal framework, the policy intent, how the reforms will work, and key statistics.
Employment Bill: four new consultations launched
The government has published four consultations on its plans to reform:
The consultation on SSP closes on Monday 2 December 2024. The other three consultations close on Wednesday 4 December 2024.
Acas updates guidance on sexual harassment
Acas has updated its guidance on sexual harassment to align with the Worker Protection (Amendment of Equality Act 2010) Act 2023, which came into force on 26 October 2024. The Act introduces a new duty for employers to take reasonable steps to prevent their staff from being sexually harassed in the workplace.
The updated guidance:
- emphasizes that employers should not wait for incidents to occur before acting and must proactively assess risks and put in place measures to prevent their staff from being sexual harassed in the first place
- advises employers to consider where their staff are most at risk and identify and take steps to mitigate those risks
- flags higher risk factors, such as employees meeting clients alone and the risk to younger workers
- provides a list of considerations and some examples of the steps it may be reasonable to take
- advises employers to act consistently and ensure that its policies, including those related to social media and the use of personal devices, refer to sexual harassment.
Government appoints new menopause employment ambassador
The UK Government has announced the appointment of journalist and broadcaster Mariella Frostrup as its new Menopause Employment Ambassador. This voluntary role, established by the Department for Work and Pensions, aims to enhance workplace support for women experiencing menopause, raise awareness of menopause symptoms, and highlight the economic contributions of women.
Read more – November 2024
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