1. Chris Belfield Christine Farquharson Luke Sibieta
Recent trends and challenges in spending per pupil across different stages of education
Chris Belfield
Christine Farquharson
Luke Sibieta
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2. Importance of understanding changes in spending per pupil
Latest evidence says higher levels of school resources can improve later life outcomes
Particularly amongst disadvantaged pupils and even more so when preceded by high quality early years provision
How have policymakers prioritised education spending in times of overall public spending cuts?
How has spending per pupil changed across different stages of education over time?
Best measure of resources available for individual pupils
Often shaped by changing pupil numbers
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3. Outline Areas of spending
Early Years Entitlement and other spending
Schools
School sixth forms and further education
Higher Education
Key trends over time and challenges for policymakers
England only, except for UK comparison in school spending
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4. Near doubling of spend per child on early years entitlement since 2004
Annual Report on Education Spending in England
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5. Slower growth in spend per hour in most years 9% rise in 2017 to help deliver 30 hours extended entitlement
Annual Report on Education Spending in England
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6. Spending on wider early years services stable or cut since 2010
Stable in real terms since 2010
This includes everything for free entitlement – 2yo offer and extended entitlement as well.
67% cut since 2010
Annual Report on Education Spending in England
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7. Presentation title to go here
Children Services and Social Care Spending Rapid rise over 2000s with some falls since 2010
Changes to
100% rise
13% fall
61% fall
Frozen real-terms
22% rise
60% fall
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8. Summary and challenges for early years
Free entitlement spending has grown substantially
Total spending has risen from almost nothing in the early 1990s to £3.5 billion in 2017–18
Mainly driven by extensions to number of children & hours covered
Hourly funding has grown by 32% since 2004–05; over a third of this growth came in the last year
Meanwhile, other early years services have seen significant cuts
Significant pressure on support for vulnerable children
Challenges remain in designing a funding system that balances the cost to taxpayers with the importance of high-quality provision
Particularly important in delivering the 30-hour entitlement
Annual Report on Education Spending in England
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9. School spending per pupil mostly stable since 2010, with small cuts of 4% since 2015
Follows on from very large increases over 2000s
Secondary school spending
Primary school spending
Annual Report on Education Spending in England
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10. ... additional funding announced in Summer 2017 and 2018 prevents further real terms cuts
Secondary school spending
Primary school spending
Annual Report on Education Spending in England
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11. Protection for funding directly allocated to schools, large cuts to sixth forms and LA services
Total: 24% rise
Notes: Figure are per pupil aged 3-19
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12. Protection for funding directly allocated to schools, large cuts to sixth forms and LA services
Total: 8% cut
Notes: Figure are per pupil aged 3-19
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13. Smaller cuts to school spend per pupil in Wales & Scotland where pupil numbers have risen by less
Notes: * figures for Northern Ireland represent changes since
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14. Ongoing pressures on school spending
Total school spending per pupil 8% lower than in
Spending directly allocated to schools largely protected
More than 50% cut to LA spending and over 20% cut to sixth form funding
Significant cost pressures on high needs budget
Stable overall incidence, but more pupils in special schools and with ASD
New national funding formula reduces flexibility
Teacher Labour Market Pressures
Significant recruitment and retention problems at time of rising pupil numbers, particularly in maths and science subjects
Ending of pay cap already means that public sector pay cap is rising faster than inflation
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15. Rise & fall in FE and Sixth Form Spending Very large cuts to 19+ Further Education since 2010
22% cut since 2010
42% cut since 2010
18% cut since 2010
Annual Report on Education Spending in England
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16. Large cuts to 16-18 spend per student since 2010, particularly school sixth forms
Extra funding for T-levels for extra teaching hours
Same level as in 2006, about 10% above level in 1990
2010 to 2017: 8% cut
2010 to 2019: 8% cut
2010 to 2017: 20% cut
2010 to 2019: 23% cut
Level will be 16% lower than in 2002
Annual Report on Education Spending in England
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17. Summary and Future Challenges
Large increase in education participation amongst year olds
Falling numbers of 19+ learners, larger share now apprenticeships
Large falls in spending
8% cut in FE spend per student over 2010s
21% cut in school sixth form spend per student
Over 40% fall in total 19+ FE spending
Future challenges
Delivering high-quality education with dwindling resources
New T-levels with single awarding body due to start in 2020 – will they be ready and of high-quality from day 1?
T-levels and apprenticeships focused on developing specific occupational skills - will this leave individuals vulnerable to economic/trade shocks?
Annual Report on Education Spending in England
© Institute for Fiscal Studies

18. Higher Education
HE is a large and rapidly expanding part of the education system
Around 1 million undergraduate students were in HE in 2017, more than double the number 30 years previously
Provision of HE represent a significant cost to government
Government pays out more than £17 billion per cohort of student that enter HE
Includes spending on teaching grants, tuition fee loans and maintenance loans
The HE system has been under continual reform in recent years
‘Post-18’ review may result in further reforms
Annual Report on Education Spending in England
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19. University resources 17%
Annual Report on Education Spending in England
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20. Government finances £800m saving in long-run cost
£6bn reduction in deficit
Annual Report on Education Spending in England
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21. Future challenges
Ongoing review into post-18 system may mean further changes
Reintroduce maintenance grants?
Reduce interest rates on student loans?
How to improve quality of education provided
New data suggests big variation earnings by subject and institution
Fees no longer planned to be linked to TEF
Falling resources?
Funding per degree fell by 25% between 1990–91 and 1997–98 and again by 9% between 2006–07 and 2011–12
Both fees and teaching grants are frozen in nominal terms this means real resources are likely to decline in coming years
Annual Report on Education Spending in England
© Institute for Fiscal Studies

22. Summary and overall challenges
Early Years
Increasingly focused on early years entitlement
Challenge of delivering high-quality care and affordability
Support for most vulnerable children
Schools
8% cut in total school spending per pupil since 2010
Very challenging teacher labour market
Large cost pressures on high-needs budget
Further Education
Delivering high-quality education with dwindling resources
Higher Education
Potential changes in post-18 review : fees, grants, loan repayments
Transparency of figures in public finances
Annual Report on Education Spending in England
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23. References
Public spending on children in England: 2000 to 2020 ( children/) 2018 Annual Report on Education Spending in England (
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