Ministers face having to cut £300 million from school budgets next year after the recent national insurance (NI) contribution rise was axed.
In his “mini-budget”, Chancellor Kwasi Kwarteng announced the 1.25 percentage point increase in NI, that came into effect in April, would be reversed.
The increase, dubbed the “health and social care levy”, was meant to raise more funding for the NHS. Schools were given extra funding to cover the estimated £300 million a year cost.
The first instalment was paid this year, with future funding rolled into the national funding formula.
Although this year’s cash will not be clawed back, the Treasury confirmed department budgets will be adjusted from 2023-24.
