Teachers Losing Their Jobs as Schools Face Funding Shortfalls

Schools are laying off teachers and support staff due to insufficient funds to cover the significant salary increase granted by the government. The issue is expected to worsen further this year as educational institutions confront a financial gap of several hundred million pounds following an inflation-beating recommended wage boost of 4% from the official pay review board.

Trade unions report an increase in inquiries seeking assistance from educators facing potential job losses. According to NASUWT Acting General Secretary Matt Wrack, "The union has observed a growing number of teachers reaching out regarding impending layoffs at their institutions."

Following the government's choice made merely weeks after Labour’s electoral win in the previous June, teachers were granted a 5.5% salary increase, effective from September. Education Secretary Bridget Phillipson indicated that the funding demonstrated the new administration's dedication to "collaborating with our fantastic teachers" and assured that the rise would be "entirely financed," implying that school budgets would go up.

However, a technical notice from the Department for Education disclosed that expenses at schools increased faster than their funding did during the academic year 2024-25. The document stated: “If we compare the growth rates of funding versus expenditures, this suggests that on average, state-funded schools will face a shortfall of about 0.5 percent in 2024-25, equating to roughly £250 million nationally.”

This deficit will pale in comparison to the substantial financial gap confronting schools during the 2025-26 academic year following the School Teachers' Review Body’s recommendation for a significant salary increase of almost 4%.

The Department for Education suggested a smaller rise of 2.8%, but they acknowledged that schools would need to find "efficiencies," which is government-speak for reductions, to cover this cost.

The Department for Education admitted in evidence to the pay review body: "Most schools will need to supplement the new funding they receive in 2025-26 with efficiencies."

According to an analysis conducted by the Institute for Fiscal Studies, a salary increase of nearly 4% could result in a funding gap of £800 million across all UK schools.

Mr Wrack commented: "School budgets are facing such pressures that it’s becoming more difficult for schools To keep the standard of teaching high, safeguard employment, and put money into their staff.".

And leaders acknowledged they were compelled to implement reductions.

James Bowen, the assistant general secretary of the school leaders' union NAHT, stated: "Following over ten years of budget restrictions imposed by the preceding administration, schools have had to endure successive reductions. It is anticipated that the funding allocated for this fiscal year will fall significantly short of covering the escalating expenses."

We continue to receive reports from school heads who are compelled to implement layoffs due to funding shortfalls, which include reductions in leadership positions, teaching staff, and support personnel.

Trade union representatives have cautioned that compelling educational institutions to trim their budgets in order to finance salary increases could be detrimental. could lead to strikes .

Conservative parliamentarian Richard Holden stated schools in his constituency were cutting staff. He has been contacted by a school therapist who told him in a letter: "I have recently been informed that I am being made redundant. Most of the schools in the trust are making cuts in order to stay afloat.

The staff members whose positions are being eliminated or who are facing reduced working hours include teaching assistants, as well as those supporting social, emotional, and mental health needs and other forms of assistance.

However, Labour Members of Parliament share these concerns. Sam Rushworth, the Member for Bishop Auckland, stated he plans to address Education Ministers regarding layoffs within his constituency. He conveyed to the House of Commons earlier this week: “I am profoundly troubled by the financial situation at Howden-le-Wear primary school in my district. Following years of budget reductions, they must now lay off four teaching assistants.”

A representative from the Department for Education stated: "The current administration took over with a difficult financial situation, which included a £22 billion deficit. Nonetheless, the Budget maintained crucial education priorities such as essential school funding, ensuring we can implement our Plan for Change."

We acknowledge the difficulties faced by schools, yet even amid the tough financial climate, we're injecting an additional £3.2 billion into educational funds. We have confidence in schools, as they understand their students most intimately, to determine the optimal way to allocate these finances so each child can succeed and flourish while achieving maximum efficiency from available resources.

In addition to investing, we've made it clear that we'll assist leaders in using funds as effectively as possible. This includes providing schools with a range of both current and new productivity measures designed to aid them in cutting expenses and managing their financial resources better.

MP Richard Holden stated: "Whether they're family-run enterprises, charitable organizations, or entities providing social support—no matter their size—all these employers are bearing the brunt of Labour’s increase in National Insurance tax. This hike threatens to eliminate many jobs and drive up costs for consumers while also depressing wages."

What’s even more startling is that both the schools and doctors, who must also bear the higher contributions, aren’t receiving additional funding to offset these expenses—resulting in layoffs throughout the public sector as well.

Labour's increases in taxes are leading to job losses and stifling opportunities for your constituents. I strongly advise them to reconsider their approach before they follow the path of every major Labour government throughout history, resulting in higher unemployment rates and likely being ousted from power.