After yesterday’s budget a couple of MIS providers commented to us with ‘reaction pieces’, so we asked all MIS providers if they had any comments they wanted to share.
As always, we ask all suppliers the same questions and we list MIS supplier responses received in strict alphabetical order, however in response to this question we have so far only received three replies, as shown below, after a brief run down of the key budget elements for education.
Brief review of the UK budget with a focus on the education sector:
The UK’s 2024 budget, presented by Chancellor Rachel Reeves, places significant emphasis on increasing funding in education and addressing key challenges within the sector. Here are the main highlights relevant to education:
School Funding and Teacher Recruitment:
The core school budget will receive an £11.2 billion boost over the next two years, ensuring a 3.5% increase in real terms. This allocation includes funds to support a recruitment drive for 6,500 additional teachers and to improve teacher training and retention, particularly in shortage subjects such as science and math. Additionally, funding for free breakfast clubs has been expanded to £30 million, aimed at supporting primary students and reducing learning disparities.
School Rebuilding Programme
An additional £1.4 billion has been allocated to continue the School Rebuilding Programme, which aims to rebuild or significantly renovate schools in poor condition. Although this is a step forward, critics argue that a more substantial capital investment is needed to fully address the deteriorating infrastructure across many schools
National Insurance Increase:
Changes to employer National Insurance contributions (up by 1.2%) may pose financial challenges for schools, adding around £200 million annually to school budgets. This cost increase, combined with the removal of charitable tax benefits for private schools, could lead to tighter budgets and more pressure on resources. Initial statements from the government suggested that schools would be fully funded to cover this increased cost, although some statements don’t include the word ‘fully’. With large staff numbers in schools and MATs, this increase in employer NI contributions could have far-reaching effects if not fully funded and we wait to see the final outcome here.
Special Educational Needs and Disabilities (SEND)
Funding shortfalls in SEND remain a pressing issue, with local authorities and schools struggling to meet the growing demand for high-needs support. Although there was £1 billion earmarked for SEND-specific funding in this budget, experts feel this will not be anywhere near enough to address the estimated £4 billion shortfall already built up and there are ongoing discussions about addressing council deficits exacerbated by SEND requirements.
VAT on Independent school fees.
The government has introduced a 20% VAT charge on private school tuition fees, effective from January 2025. This policy aims to generate around £1.7 billion annually, with these funds directed toward improving state education. The VAT will apply to most tuition and boarding fees unless schools disaggregate certain services, such as after-school care or boarding accommodation, which may remain VAT-exempt if they meet specific criteria. Some independent schools are likely to raise fees to cover the VAT, potentially adding 10-20% to annual costs, while others may try to absorb part of the increase. For families already receiving bursaries, VAT might only apply to the reduced fee amount, potentially providing some relief.
The Independent Schools Council (ISC) has today said it will launch legal action against the government’s decision to impose VAT on independent school fees.
The council, which represents more than 1,400 private schools in the UK and abroad, reached its decision after a board meeting held on Thursday.
Human rights barrister David Pannick KC will lead the challenge, which will be brought on behalf of parents.
Overall, while the budget aims to support recruitment, retention, and infrastructure, many in the sector believe that deeper funding increases are necessary, especially in areas like SEND and capital funding. The government’s approach reflects a strategic focus on education reform, but responses indicate mixed optimism due to underlying fiscal and logistical challenges.
The Confederation of School Trusts (CST) published this:
I know this week is half term for many of you, so with apologies for disturbing what I hope is a restful break, I’m writing to share a brief overview of the key points from the Budget delivered by the Chancellor yesterday. The Budget statement also acted as ‘phase one’ of a Spending Review, which has reset “departmental spending for 2024-25 and settles budgets for 2025-26”.
‘Phase 2’ will be a longer-term spending settlement and will happen in the Spring. According to Public First, this is likely to be much more orientated around Labour’s five missions for government.
Comments from MIS providers:
Richard Clutterbuck, Head of Strategic Relations, Bromcom.
This Government is clearly attempting to tackle the gaps in our education system. While the Budget does provide general increases in funding, including a £1bn rise for special educational needs and disabilities (SEND), it doesn’t go far enough to close the gaps.
The 6% increase for SEND will be welcomed among recent warnings that the current system is unsustainable, but it does not address the deficits of more than £4bn that have built up in local authorities.
It’s clear schools are going to need additional support, and this is where technology plays a vital role. When used effectively, digital tools can help to ensure that the unique needs of SEND students are consistently met across different areas of their education.
An MIS for example, serves as the backbone of a school’s SEND support system. It enables a well-coordinated, data-driven approach to identifying needs, tracking progress, and managing interventions, all of which are essential for creating an inclusive environment where SEND students can thrive.
Technology is already helping to empower educators to better meet the diverse needs of SEND students and improve their educational outcomes, and the Budget announcement only goes to further prove the importance of tech’s role in helping to close the gaps in our education system.
Commenting on the Chancellor’s Autumn Budget, Simon Freeman, Managing Director for Education at IRIS Software Group, said:
“Directing more funding towards state sector schools in need is essential, and the pledge to use tax revenue to attract, support and retain teachers and school staff is promising.
“The end of VAT exemption for fee-paying, private sector from January 2025 is no surprise – and many smaller schools have already combined forces or closed over the past 24 months. With today’s news, we anticipate a decline in private school student enrolment rates, making it even more important to ensure our state schools are prepared with the right talent and resources. This needs to be supplemented by a focus on retaining – not just attracting – talent so that schools can cope with the influx of extra pupils.
“At IRIS Education, we serve one-half of UK schools and two-thirds of multi-academy trusts (MATs) through our technology solutions. In ongoing conversations with our customers, there are a few key areas to explore further with today’s budget announcement:
“SEND management remains a major concern for school leaders, who are facing a shortage of resources and struggle to provide adequate support for students with special educational needs. Approximately one in seven people in the UK identify as neurodiverse – making it more important than ever to have the right infrastructure in place to support neurodiverse learners and help them thrive in educational environments. The £1bn commitment made today is a strong starting point for schools, and schools will still need to look at alternative measures to keep SEND support up to standard. For example, technology, including special education technology solutions like PAGS, is helping to streamline SEND management in schools and offer more comprehensive support.”
“The £2.3bn investment to boost teacher recruitment will see an evolution of the workplace experience at schools, with modern and professional HR and payroll technologies and solutions. In order to attract the right talent, schools and MATs are increasingly marketing themselves to teachers and ensuring the recruitment cycle runs seamlessly. To retain top talent, HR professionals are investing in professional learning and development courses, managing teacher expenses in shorter cycles, and giving staff the best possible benefits and work life experience while at school.”
“Advanced analytics can help schools and MATs identify trends and anticipate student and teacher needs. Trust leaders can quickly see how staff are getting along and where interventions might be needed to support staff retention.”
“Fee-paying schools may want to explore integrated finance tools with automated VAT tracking to reduce administrative burden and remain as independent as they can be.”
It was positive to see a specific allocation of additional funding for education in the Autumn budget, following the announcements for teacher pay rises and others in the public sector it is beginning to feel like we are beginning to turn a corner – if not cautiously. The capital funding I’m sure will be well received by schools but as a software provider that support teachers, students, and parents we are also extremely aware that school budgets remain extremely limited.
The rise in employer National Insurance will impact our business and we hope to keep our costs down in such a competitive market. As we make the bold step in the MIS arena, we are more than aware that schools are trying to make every penny count, and we are focused on supporting this with better workflow processes through the design of our MIS functionality, which hopefully goes some way to improve the retention and recruitment crisis in schools.
