The government has released its 2025 Spending Review, setting out how public money will be spent over the coming years. For those working in early years and primary education, the review offers some positive developments – but overall, it may not go far enough to tackle the ongoing challenges of staffing, funding and access to resources.
Key Points for the Sector
1. Schools Budget to Increase Slightly
- The core schools budget will grow by £2 billion in real terms over the next four years.
- This means a yearly funding increase of around 1.1% per pupil until 2028-29 – enough to cover inflation, but not much more.
- £2.4 billion a year has been committed to rebuilding over 500 schools, with more investment planned beyond 2029.
2. Childcare and Early Years Support Grows
- Free School Meals will be extended to all children in England whose parents receive Universal Credit. This will be supported by £410 million a year, plus £80 million for early years and post-16 settings.
- An extra £1.6 billion a year by 2028-29 will support the ongoing expansion of funded childcare for working parents.
- Nearly £370 million will be spent across the next four years to support school-based nurseries.
- Breakfast clubs are being piloted in 750 schools, with national rollout expected in the future.
3. Special Educational Needs and Disabilities (SEND) Reform
- Over £500 million will be invested to reform the SEND system and improve support for children with additional needs.
- More detail will be announced in a new Schools White Paper later this year.
4. Local Authority Funding Increase
- Councils will receive an average real-terms funding boost of 3.1% each year until 2028-29.
- This includes an extra £3.4 billion by 2028-29, some of which may support children’s services – although how the money is used will vary by area.
What's Missing?
While the review includes important investments in childcare and education, it does not directly address the workforce crisis affecting early years settings and schools. Staffing shortages, workload pressures and access to resources remain major concerns, and this review offers limited reassurance in these areas.
The 2025 Spending Review brings welcome investment in areas like Free School Meals, childcare expansion and SEND reform. But for early years and primary education providers still grappling with staffing pressures and tight budgets, it may feel like only a partial step forward.