The first quarter of 2025 has been a period of major change for the UK education sector. Schools, policymakers, and organisations are dealing with financial pressure, regulatory reform, and ongoing workforce challenges. This briefing provides a clear overview of the most important developments and their implications for leaders and decision-makers.

1. Funding Pressures and School Budgets

School funding is rising on paper, but real costs continue to grow faster. The government’s 3.7% increase in per-pupil funding becomes a 1.2% rise once inflation is considered. At the same time, the Institute for Fiscal Studies predicts that school costs will grow by 3.6%.

Most schools expect to feel the strain. According to a recent survey:

  • 94% of secondary schools

  • 76% of primary schools

believe they will struggle to meet rising costs in 2025–26.

A recommended 2.8% teacher pay rise has not been fully funded by government, raising the risk of staff reductions, larger class sizes, and fewer support services.

2. Changes to Ofsted and School Accountability

Concerns about the stress caused by inspections have led to proposals for a new Ofsted system. The government plans to replace single-word ratings with more detailed report cards. Many educators welcome the change, but some argue it does not go far enough. They are calling for a more supportive inspection model that protects staff wellbeing while still encouraging improvement.

3. VAT on Private School Fees

The government intends to apply a 20% VAT charge to private school fees. This policy is expected to raise £1.8 billion a year by 2029–30 to help fund state education.

However, the change is creating financial pressures for independent schools. Some have already announced staff cuts or increased fees. There are concerns that many families may move their children into state schools, which could add around 35,000 pupils to an already stretched system.

4. Teacher Recruitment, Retention, and Possible Strikes

Teacher shortages remain a serious issue. Unions have said the proposed 2.8% pay rise is not enough, especially without full government funding. They have warned that industrial action may follow if the gap is not addressed.

Workload, stress, and pay remain the most common reasons teachers are leaving the profession. Solving these challenges is essential to maintaining a strong and stable workforce.

5. SEND Funding and Long-Term Planning

The government has announced an extra £1 billion for special educational needs and disabilities (SEND). While this is a positive step, experts say demand for support is rising even faster. Many schools warn that SEND costs risk overwhelming their budgets.

Sustainable investment and long-term planning will be needed to ensure pupils with additional needs receive effective support.

6. Pressures on Curriculum and Assessment

The number of pupils receiving exam access arrangements such as extra time has increased to 625,000 in 2023/24, a 12.3% rise. This reflects broader recognition of diverse learning needs, but it also places new pressures on schools.

The government has launched a review to explore more inclusive assessment methods. Recommendations are expected later in 2025.

7. The Role of Uniform Education in Community Support

Organisations such as Uniform Education are helping schools handle rising pressures by reinvesting in communities. The organisation commits 5% of its turnover to school and local projects. This support helps fund resources, improve learning environments, and strengthen equity within the system.

From financial challenges to inspection reform, the UK education sector is entering a period of significant change. Strong leadership, clear policy direction, and collaboration between government, schools, and private organisations will be essential. The work of organisations like Uniform Education shows how partnerships can help build a more resilient and equitable system.

Source: Uniform Education