School Costs and Employer’s National Insurance Contributions

The Tories left a trail of devastation across our schools, with buildings crumbling and teachers leaving in their droves. Through taking tough decisions at the Budget to fix the foundations, Labour has been able to increase school funding by over £3.2 billion. As a result, there is a forecast of £400 million of headroom in schools’ budgets nationally. The Tories’ only plan is to cut school budgets to restore private schools’ tax breaks. We are getting on with the job of delivering for children.

Many heads, teachers and support staff who are worried about school budgets have been in touch with me. I recently had a letter, which was sent to the Secretary of State, from a therapist in a school, saying:

“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. Staff that are being cut or having hours reduced are teaching assistants, social, emotional and mental health staff and other support staff.”

How would the Minister answer the question posed by my constituent who is being made redundant, who asks:

“Why have Labour voted for unfunded pay rises and National Insurance Tax increases if they cannot support schools with the cost”

of these proposals?

The Government are committed to supporting teachers to stay in the profession and to thrive, which is why we accepted the schoolteachers pay review body 2024-25 recommendation in full, implementing a 5.5% pay award. That means that teachers and school leaders have had a combined increase of 17% over the last three years. We really need some humility from Conservative Members about where these problems stem from.

Headteachers are warning that the gap in funding to cover the Chancellor’s jobs tax is equivalent to losing more existing teachers than the Government are planning to recruit. I have heard that message loud and clear from headteachers on my recent school visits, and unfunded pay awards will just make this worse. Why is the Education Secretary not standing up for our schools?

This Labour Government have made some tough decisions to fix the foundations of our economy and our public services. We make no apologies for doing what the last Government failed to do while in office. The extra money from national insurance contributions means we can protect key educational priorities. The Conservatives should be honest: what would they cut to pay for our schools?

Can the Minister solve this equation? VAT is pushing more students into the state sector and increases in national insurance are squeezing staff budgets, yet the Government say their ambition is to improve school standards and staff retention. How does that add up?

This is just scaremongering from the Conservative party, because the Tories have no plan for the future of our education system. They have no plan to deliver high and rising standards. Their only education priority is to hand tax breaks back to private schools, which means cutting free breakfast clubs, cutting school-based nurseries and cutting school building.

I have been contacted by schools in my Old Bexley and Sidcup constituency that are outraged that Labour’s tax rises are forcing them to cut resources and staff while the Government demand that teachers do more. One teacher told me that, as a proud trade unionist, she had always voted Labour, but feels completely betrayed. She says:

“Labour have made the situation in schools 10x worse letting students and teachers down”.

She is right, is she not? Labour has betrayed teachers, students and schools.

Schools funding is increasing by over £3.2 billion compared with 2024-25, meaning that core school budgets will total over £64.8 billion this year. The last Government sat on the pay review recommendations, leaving it for this Government to clean up. The Conservative party’s record on education was dismal; school buildings were crumbling and teachers were leaving the profession. This Government are focused on returning education to the centre of public life.

I recently met student councillors Aadam, Olivia, Adam and Remy at Fixby junior and infant school. They gave me a guided tour of the school and highlighted how the playground was long overdue for an upgrade, but the school is facing increasing costs to resurface it. On behalf of the student council, can I ask the Minister what additional funding and support is available so that pupils can access high-quality play areas?

We absolutely support children to have the ability to play, and that is really important in school as well. We understand that some schools require additional support. We are working closely with the sector to ensure the best outcomes for all children, not just some children, as the previous Government focused on.

Local Conservative council candidates in Mansfield say on the doorstep that they want better funding for our schools. However, in the pursuit of restoring private schools’ tax breaks, which of these measures does the Minister think the Tories would cut first: new teachers, speech and language support, mental health counsellors, careers advice or work experience?

Order. I can save the Minister. That question is about Opposition policy, which is not her responsibility.

I am deeply concerned about the funding of Howden-le-Wear primary school in my constituency. After years of real-terms cuts, it is now making four teaching assistants redundant. I will write to the Minister on that to seek her support, but the elephant in the room is that the pay of the chief executive of the multi-academy trust of which it is a member has increased £30,000 over the last two years, taking it to £275,000. That is the equivalent of 12 teaching assistants. Which does she think would be better: one CEO or 12 teaching assistants?

Executive pay must be justifiable and must reflect the responsibility an individual takes on, alongside local retention and recruitment needs. We engage with trusts on levels of executive pay, and I would be more than happy to discuss the matter further with my hon. Friend.

I am deeply concerned about Prudhoe community high school in my constituency, which was opened eight and a half years ago after being built under a Conservative Secretary of State and Conservative Education Department. Unfortunately, in February this year, cracks were discovered in the structure and the students are being taught in Washington, which is quite a significant journey. Can I ask the Minister to not only back the students and staff at Prudhoe community high school, but have an urgent investigation into how the school got into this state? Does she agree that, after 100 years in charge, the legacy of the Tories in west Northumberland is crumbling?

I absolutely recognise the challenges Prudhoe community high school is facing, in particular those due to sit their GCSE and A-level exams. I wish good luck to them and to all young people who over the Easter holidays have been working very hard towards their exams. Officials have been working closely with the school to ensure they are accommodated in the right way, but my hon. Friend raises a really important point about how a school built eight years ago is crumbling, and indeed all the schools across the country that are crumbling, after 14 years of a Tory Government that did not prioritise education.

I call the shadow Secretary of State.

Not only has the Education Secretary introduced a Bill to this place that will destroy standards in English schools, but now she has broken her promises on national insurance contributions compensation and is leaving schools in an impossible funding situation. Every MP has heard from headteachers who are stressed beyond belief at how to manage their funding. Can the Secretary of State guarantee that worried headteachers up and down the country will not have to make teachers redundant because of her broken promises: yes or no?

The right hon. Lady has a firmer grip on anonymous briefings in the papers than on the details of the Children’s Wellbeing and Schools Bill. She is more focused on petty political games in Westminster than on improving the lives of children and families up and down the country. The Bill will get qualified teachers in front of classrooms. It will teach a cutting-edge curriculum. It will drive down the costs of sending children to school. It will provide breakfast clubs for children who need them. It will stop vulnerable children falling through the cracks. It is a single most important piece of child protection legislation in a generation. The Conservatives voted against it. They can snipe from the sidelines; we will get on with delivering change.

Let us have another marathon runner to ask the next question.