A group of 29 headteachers from across Liverpool has issued a direct warning to the government, stating their schools are at a "breaking point" due to severe and prolonged underfunding. In an open letter addressed to Chancellor Rachel Reeves, the school leaders claim that since 2010, Liverpool schools have experienced a real-terms funding loss amounting to £52.3 million.
The letter, which coincides with the Labour party conference being held in the city, highlights the growing pressure on school budgets, staff, and educational provisions. The headteachers are calling for an urgent restoration of funding to address what they describe as a critical situation affecting thousands of students.
Key Takeaways
- 29 Liverpool headteachers signed an open letter to Chancellor Rachel Reeves detailing a funding crisis.
- The letter alleges a real-terms loss of £52.3 million for Liverpool schools since 2010.
- Headteachers report running deficit budgets and facing potential job cuts to stay afloat.
- The Department for Education disputes the figures presented by the school leaders and teaching unions.
- Analysis from the Institute for Fiscal Studies (IFS) suggests that while overall spending has returned to 2010 levels, mainstream school funding growth is significantly lower due to rising costs for special needs support.
Mounting Pressure on School Budgets
The letter from the Liverpool headteachers paints a grim picture of the financial realities inside the city's schools. The figures cited, which originate from an analysis by the Stop School Cuts Coalition, suggest that 86% of schools in Liverpool have seen their funding decrease in real terms over the past 14 years. This coalition includes prominent teaching unions such as the NEU, the Association of School and College Leaders (ASCL), and the NAHT school leaders' union.
Karen Barr, the headteacher at Dovecoat Primary School, provided a firsthand account of the difficulties her school is facing. She confirmed that the school is currently operating with a deficit budget, which creates significant challenges in meeting curriculum demands.
"We are currently in a deficit budget and are providing a good education with no funding to supplement curriculum demands. The stress on staff is increasing and cuts to jobs are a real threat."
Barr also highlighted the acute funding gap for students with complex needs, a growing concern for many educational institutions across the country.
"We have a high intake of SEND [special educational needs and disabilities] issues and EHCPs [Education, Health and Care Plans] with complex needs to meet and no funding to support this," she added.
Impact on Education and Staff Wellbeing
The consequences of these budget constraints extend beyond financial spreadsheets, directly impacting the quality of education and the morale of teaching staff. Christopher Davey, headteacher of Blessed Sacrament Catholic Primary School, described the real-terms cuts as "devastating" for his school's ability to function effectively.
He explained that the widening gap between student needs, available funding, and external expectations is creating an unsustainable environment.
National Context: A Widespread Issue
According to research from the Stop School Cuts Coalition, the situation in Liverpool reflects a national trend. Their analysis found that seven out of every 10 schools in England have experienced real-terms budget cuts since 2010, indicating a systemic funding challenge across the education sector.
Davey stated, "Need cannot be met well enough, cuts are impacting quality of provision, progress and attainment as well as staff morale and wellbeing."
The collective letter warns that these "years of chronic underfunding" have forced schools to make difficult decisions, including reducing the number of subjects offered, cutting teaching positions, and limiting access to essential learning materials.
Conflicting Figures and Government Response
While the headteachers and unions present a case of severe underfunding, the Department for Education (DfE) has contested their figures. A spokesperson for the DfE stated, "We do not recognise these figures," and pointed to recent government investments in the sector.
The DfE maintains that it has protected key education priorities and is providing an additional £3.7 billion for school budgets. The spokesperson also noted an increase in pupil premium funding to over £3 billion for 2025-26 to support disadvantaged children.
The IFS Perspective on School Funding
The Institute for Fiscal Studies (IFS), a respected independent research institute, provides a more nuanced analysis. According to the IFS, total government education spending per pupil saw an 11% real-terms increase between 2019/20 and 2024/25, effectively restoring it to 2010 levels.
However, the IFS clarifies that nearly half of this increase was absorbed by spiralling costs for supporting pupils with high needs. When this is accounted for, the actual growth in funding for mainstream schools is estimated to be around 5%. Luke Sibieta, an IFS research fellow, commented earlier this year that "the next few years are likely to continue feeling very tight for schools."
The government also highlighted initiatives such as free breakfast clubs and investments in school buildings as part of its commitment to supporting education. However, for the headteachers on the front line, these measures are not enough to address the core budget shortfalls they are experiencing.
Unions Call for Action
The open letter is part of a broader campaign by teaching unions to draw attention to the school funding issue. To coincide with the Labour party conference at the ACC Liverpool, four vehicles displaying messages urging the government to "reverse school cuts" will be patrolling the venue.
Daniel Kebede, general secretary of the NEU, voiced his support for the Liverpool headteachers, emphasizing the difficult positions school leaders are in.
"Headteachers are making heartbreaking choices about whether to cut subjects, staff or resources just to balance the books. It is great to see local heads taking a stand and saying enough is enough. It is time for the Chancellor to listen to educators and restore funding for schools."
Trade unions have also warned that schools will face further tough choices regarding staffing levels as they try to meet the full cost of the teacher pay settlement for the 2025/26 academic year, adding another layer of financial pressure to an already strained system.