Department for Education

That, for the year ending with 31 March 2026, for expenditure by the Department for Education:

(1) further resources, not exceeding £50,874,837,000, be authorised for use for current purposes as set out in HC 871 of Session 2024–25,

(2) further resources, not exceeding £17,317,202,000, be authorised for use for capital purposes as so set out, and

(3) a further sum, not exceeding £66,974,384,000, be granted to His Majesty to be issued by the Treasury out of the Consolidated Fund and applied for expenditure on the use of resources authorised by Parliament.—(Catherine McKinnell.)

I call the Chair of the Education Committee.

I rise to address the House on the Department for Education’s main estimate for 2025-26. I thank the Liaison Committee and the Backbench Business Committee for allocating time for this debate this afternoon; it is an important opportunity to scrutinise the Government’s spending plans, which must deliver for every child, young person and family. Education is the bedrock of opportunity, social mobility and economic growth.

The Government inherited a situation in which almost every aspect of the Department for Education’s areas of responsibility faced severe challenges, from the financial pressures on early years providers to the erosion of school budgets and teacher pay, the crisis in the special educational needs and disabilities system, underfunding of further education and skills and a total reset needed in children’s social care.

My hon. Friend is giving a really important speech on a subject that is very dear to my heart, as everyone in the House knows. Will she add to her list the huge issues that we inherited with school buildings? As a former teacher—I have mentioned that a few times—I know that the learning environment is really important. We inherited a real issue with reinforced autoclaved aerated concrete, for example, but there have also been other issues, such as those faced by Sir Frederick Gibberd college in my constituency.

My hon. Friend makes an important point about the state of the school estate.

The final area of challenge is that many universities face a risk of insolvency. At the heart of all the Department’s responsibilities are individual children and young people who need and are entitled to the best possible start in life, secure foundations, a great education and every opportunity to grow into active citizens with successful careers and a good quality of life. The challenges in our education and social care systems can be seen in the outcomes for children and young people, with rising numbers of children not meeting the early learning goals when they start school, growing disadvantage gaps at all stages of education, very poor outcomes for care-experienced young people, rising levels of school absence and far too many children with special educational needs and disabilities not receiving the support that they need to thrive in education.

I will speak to the estimates across five key spending areas—SEND, children’s social care, early years, skills, and higher education—drawing on the Education Committee’s ongoing inquiries to ensure that these funds meet the urgent needs of our communities. On special educational needs and disabilities, the main estimate reflects the Government’s recognition of the challenges, with an immediate increase in high needs revenue funding of more than £1 billion. Capital spending for high needs provision sees a 138% uplift, from £310 million to £740 million, to create new school places.

During the inquiry, my Committee has heard powerful testimony from families and educators about the crisis in the SEND system, with witnesses calling for significant and far-reaching reform to ensure that funds translate into effective delivery for children. The Institute for Fiscal Studies warns that rising SEND costs could absorb much of the mainstream school budget uplift, and that capital investment, while significant, may not meet growing demand. The forthcoming schools White Paper promised this autumn must set out bold reforms, with resources made available to ensure that they can be implemented successfully. Our inquiry report will set out recommendations to the Government for reform of the SEND system, and I hope that the Government will make time to take full account of our work. I urge the Minister to confirm a timescale for those reforms, informed by our Committee’s evidence.

I am really grateful for the work of the Education Committee, which is excellently chaired by my hon. Friend. Does she agree that cutting the value of grants to families from the adoption and special guardianship support fund will put more pressure on children’s social care and leave children without the vital support they need?

I thank my hon. Friend for her important work in this area. I agree that the cuts made to the adoption and special guardianship support fund have caused great alarm across the adoption, special guardianship and kinship care community. It is important that in reviewing that funding, the Government look at how effective support for adoptive families can be provided across both health and education, and look to give families confidence that the support they rely on and that is needed can be delivered. We know that in the past, adoptive families have not always been able to access the support they need, so I agree with my hon. Friend that this is an urgent and important consideration.

I call on the Government today to provide a clearer analysis of the funding that is needed for children’s social care, as well as plans to bridge the gap between the funding that has been announced to date and the £2.6 billion prescribed by the independent review, so that preventive services that keep families together can be prioritised.

Turning to early years education, the expansion to 30 hours of funded childcare for under-fives from September 2025 is transformative. The main estimate allocates £8.48 billion to the early years block—nearly double the 2023-24 spend—with an additional £1.8 billion in 2025-26. However, the IFS highlights that higher than expected take-up could increase costs by £1 billion annually, and the sector faces a shortfall of 70,000 places and 35,000 staff. The £370 million for 3,000 new nurseries in primary schools is a very positive step, but the Committee has heard concerns about delivery timelines and workforce shortages. Given the rising costs to providers, including minimum wage and national insurance increases, I urge the Minister to clarify how the Department will ensure sufficient capacity and support providers to deliver this ambitious expansion on time. It is also important that the Government give careful consideration to improving quality and consistency in the early years, and to how best to ensure that high-quality early years education maximises the unique opportunity in the first 1,000 days of a child’s life to stop the impacts of disadvantage being embedded for a lifetime.

This debate is a very important opportunity to discuss the upcoming cuts in the Department for Education. We know from the estimates document that overall resource departmental expenditure limits are coming down. We are told that that is largely a technical change as a result of changes to the student loan book, but I have to say that these are rather large numbers to come from such technical changes.

From the comprehensive spending review document, we know that like other Departments, the Department for Education has agreed to 5% in savings and efficiencies. What that document does not explain, however, is 5% of what. Presumably, it is not 5% of the entirety of the DFE’s budget, because the DFE is different from many other Departments in that so much of its spend goes directly to schools, colleges and early years settings providing for children. According to the estimates, the DFE’s admin spend is actually increasing. Part of that, of course—in line with so many other private and public sector organisations across the country—is the extra costs imposed by the increase in national insurance contributions, so what are those efficiencies? I hope the Minister will be able to tell us today.

So many things have already been cut, including the discretionary spend that helps children to achieve their best, with everything from Latin to computer science and the cadets programme. I do not think there are many more things that can be taken out, but perhaps the Minister can tell us. In particular, I would like her to reassure us that the primary physical education and sport premium is safe. Will she please do that in winding up?

In the past few days, a headteacher in my constituency has told me that their school’s funding is going down significantly in real terms this year. They say that they are now looking at a crisis, with potential staff cuts coming. On top of that, I have heard local providers of early years education saying that they are being even more punitively hit, because private sector providers receive no support with national insurance. Does my right hon. Friend agree that, for a Labour Government who came in promising to do so much for education, our children are actually seeing very little?

My right hon. Friend makes powerful points, including about the additional unfunded cost pressures for nursery providers—of course, that argument also extends to regular state-funded schools. The one thing I might quibble with is his statement that this Labour Government came in promising to do so much for education. Actually, the Labour manifesto was rather light on commitments on education. The biggest ones were, first of all, the commitment to roll out mental health support teams to cover all schools in the country. On closer examination, that commitment turns out to be not just similar to, but identical to, the policy of the previous Government, which was to roll out mental health support teams to cover all schools in the country.

The second high-profile commitment was about breakfast clubs. The maths on breakfast clubs are something of a mystery to me, because I have heard Ministers repeatedly say that having a breakfast club is going to save parents £450 a year, but they are reimbursing schools £150 a year. Where is the rest of that money supposed to come from? It is also true that some schools—including some in my constituency—already have a breakfast club that is charged at a reasonable rate, so they will lose revenue from their existing breakfast club. Before anyone says, “You have to think about whether it should be charged for or not,” it is worth remembering that the breakfast club provision that already exists is typically reimbursable for families on universal credit at a rate of up to 85%, to the extent that it is childcare that is enabling parents to go to work.

Then, of course, there is the famous—or infamous—commitment to 6,500 additional teachers. Colleagues might remember that that commitment was going to be paid for by the receipts on VAT from private schools. The Government now say that VAT from private schools is going to pay for housing, not for teachers. It is not clear that that policy is going to raise much revenue to spend on anything, given that the most recent figures show a fall in the number of children at independent schools. Those are the Government’s own figures. [Interruption.] I beg your pardon?

A rise in the number of independent schools.

The most recent figures—the Government’s own figures—show a fall of 11,000 in the number of children at independent schools.

Of course, the number of teachers in the state sector is not going up in this country; it is coming down. The Government have tried to have this every possible way. There is a line in their manifesto that is very clear—it comes up more than once. It says that Labour is going to recruit

“6,500 new expert teachers in key subjects”.

When asked repeatedly what key subjects they had in mind, they refused to say. Eventually they said that these teachers will be recruited—I think am I quoting this correctly, but if not absolutely accurately then pretty close—from schools and colleges across the country. Then some numbers came out showing that the number of teachers in primary schools had gone down. Funnily enough, the target was then redefined so that it did not include primary school teachers; it would include only secondary school teachers.

That brings us back to this question: if it is only secondary schools, where teachers have specialist subjects, what are the key subjects that will count towards this number? If the Government just meant any subject, the word “key” would not be there. What do they mean by expert teachers? If they mean simply teachers with qualified teacher status—[Interruption.] I think the Minister might be readying herself to intervene.