Schools responses to financial pressures

This research report covers 2023 and was carried out by ESFA. The report is useful for all schools to read to gain an insight into how other schools are dealing with financial pressures and some of the action they have taken.

The report finds that the majority of schools and academies reported that they were experiencing some degree of financial pressure which required ‘quite a few changes’ (39%) or ‘substantial changes’ (40%) to their provision.

It is interesting that when asked if schools’ income generation strategies had changed because of financial pressures experienced, more than two thirds of schools (68%) said yes. This was more common in primary schools (71% of primary maintained schools and primary SATs and 68% of primaries in MATs, compared to 58% of secondary maintained schools, 57% of secondaries in MATs and 52% of secondary SATs).

Applications for grants had seen the greatest increases, with two thirds (64%) increasing their activities in this area. Around three-fifths (59%) reported increasing the number of times they request donations from parents, 57% charges for wraparound care (before and after school clubs), 56% marketing to prospective pupils and around half increased the letting out of school buildings/premises to other groups and businesses (49%). The interviews found that alongside government grants, such as the Condition Improvement Fund (CIF), schools applied to charities and foundations to support curriculum and extra-curricular activities. Where possible, schools were using lettings to increase revenue including all-weather football pitches, school classrooms and swimming pools. The interview analysis found evidence that school improvement services were an important revenue stream for those schools with the expertise and capacity to offer such a service.

Have you seen the DAG Busy Governance Guide to Raising Additional Funds?