The IFS 2023 Report on Education Spending in England highlights a significant decrease in total public spending on education, with an 8% real-terms drop since 2010. The report reveals substantial reductions in early years, schools, and higher education funding, alongside persisting geographic and socioeconomic disparities.
The UK has significantly brought down their education spending by 8 percent or a total of around £10 billion (USD 12.57 billion) since 2010-11 according to the IFS Annual Report on Education Spending in England for 2023.
The report offers an insightful and detailed analysis of the current state of education financing across various stages in England. It also examines the key trends, challenges, and policy impacts in education spending, providing a valuable resource for understanding the landscape of educational investment in the UK.
Since 2010–11, total public spending on education in the UK has seen an 8 percent decrease in real terms, falling from approximately 5.6 percent of national income to around 4.4 percent in 2022–23. This trend highlights a significant shift in the government’s prioritization of education relative to other national expenditures.
Image Source: Annual report on education spending in England: 2023
The report shows a more than fourfold increase in early years education and childcare spending between 2001–02 and 2018–19, followed by a subsequent decrease. School spending per pupil also experienced a real-term reduction of 9 percent from 2009–10 to 2019–20, indicating tightening budgets and potential impacts on educational quality.
Further education for 16–18-year-olds and higher education sectors have faced considerable financial challenges. Despite increases in recent years, spending on further education remains below 2010 levels. Higher education, in particular, has seen a steady decline in up-front spending on teaching resources per student, compounded by inflation and a tuition fee freeze.
Image Source: Annual report on education spending in England: 2023
A key focus of the report is the persistent geographic disparities in educational opportunities and achievements. The effectiveness of government policies, such as ‘Education Investment Areas’, in mitigating these inequalities is critically assessed. The report also examines funding measures targeting disadvantaged children, crucial for understanding the dynamics of the attainment gap.
The IFS report provides a crucial insight into the shifting landscape of education spending in England. It underscores the need for strategic investment and policy reevaluation to address the evolving challenges in the education sector. The analysis of geographic and socioeconomic disparities offers a basis for targeted interventions to ensure equitable educational opportunities across the country.
To read the full report, please click here.
