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Department for Education

My hon. Friend makes an important point about the state of the school estate.

The final area of challenge is that many universities face a risk of insolvency. At the heart of all the Department’s responsibilities are individual children and young people who need and are entitled to the best possible start in life, secure foundations, a great education and every opportunity to grow into active citizens with successful careers and a good quality of life. The challenges in our education and social care systems can be seen in the outcomes for children and young people, with rising numbers of children not meeting the early learning goals when they start school, growing disadvantage gaps at all stages of education, very poor outcomes for care-experienced young people, rising levels of school absence and far too many children with special educational needs and disabilities not receiving the support that they need to thrive in education.

I will speak to the estimates across five key spending areas—SEND, children’s social care, early years, skills, and higher education—drawing on the Education Committee’s ongoing inquiries to ensure that these funds meet the urgent needs of our communities. On special educational needs and disabilities, the main estimate reflects the Government’s recognition of the challenges, with an immediate increase in high needs revenue funding of more than £1 billion. Capital spending for high needs provision sees a 138% uplift, from £310 million to £740 million, to create new school places.

During the inquiry, my Committee has heard powerful testimony from families and educators about the crisis in the SEND system, with witnesses calling for significant and far-reaching reform to ensure that funds translate into effective delivery for children. The Institute for Fiscal Studies warns that rising SEND costs could absorb much of the mainstream school budget uplift, and that capital investment, while significant, may not meet growing demand. The forthcoming schools White Paper promised this autumn must set out bold reforms, with resources made available to ensure that they can be implemented successfully. Our inquiry report will set out recommendations to the Government for reform of the SEND system, and I hope that the Government will make time to take full account of our work. I urge the Minister to confirm a timescale for those reforms, informed by our Committee’s evidence.

Our children’s social care inquiry has exposed acute funding pressures, with local authorities forced to prioritise crisis interventions over preventive support due to a £1.2 billion cut in early intervention spending since 2012. The spending review introduces a £555 million transformation fund over three years, including £75 million in 2025-26 and £270 million for a new children’s social care prevention grant. That is a vital step towards effective reform.

The additional £560 million for children’s homes and foster care placements is also welcome. However, the independent review of children’s social care estimated a need for an additional £2.6 billion of funding over four years. My Committee’s work underscores the urgency of investing in early intervention to reduce the number of children being taken into care and to improve outcomes.