Department for Education

Rachael Maskell Excerpts

Tuesday 24th June 2025 Commons Chamber

[Helen Hayes]

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.

[Rachael Maskell (York Central) (Lab/Co-op)]

I am really grateful for the work of the Education Committee, which is excellently chaired by my hon. Friend. Does she agree that cutting the value of grants to families from the adoption and special guardianship support fund will put more pressure on children’s social care and leave children without the vital support they need?

[Helen Hayes]

I thank my hon. Friend for her important work in this area. I agree that the cuts made to the adoption and special guardianship support fund have caused great alarm across the adoption, special guardianship and kinship care community. It is important that in reviewing that funding, the Government look at how effective support for adoptive families can be provided across both health and education, and look to give families confidence that the support they rely on and that is needed can be delivered. We know that in the past, adoptive families have not always been able to access the support they need, so I agree with my hon. Friend that this is an urgent and important consideration.

I call on the Government today to provide a clearer analysis of the funding that is needed for children’s social care, as well as plans to bridge the gap between the funding that has been announced to date and the £2.6 billion prescribed by the independent review, so that preventive services that keep families together can be prioritised.

Turning to early years education, the expansion to 30 hours of funded childcare for under-fives from September 2025 is transformative. The main estimate allocates £8.48 billion to the early years block—nearly double the 2023-24 spend—with an additional £1.8 billion in 2025-26. However, the IFS highlights that higher than expected take-up could increase costs by £1 billion annually, and the sector faces a shortfall of 70,000 places and 35,000 staff. The £370 million for 3,000 new nurseries in primary schools is a very positive step, but the Committee has heard concerns about delivery timelines and workforce shortages. Given the rising costs to providers, including minimum wage and national insurance increases, I urge the Minister to clarify how the Department will ensure sufficient capacity and support providers to deliver this ambitious expansion on time. It is also important that the Government give careful consideration to improving quality and consistency in the early years, and to how best to ensure that high-quality early years education maximises the unique opportunity in the first 1,000 days of a child’s life to stop the impacts of disadvantage being embedded for a lifetime.

On skills and further education, the 12.7% increase in the apprenticeships budget to just over £3 billion, alongside £1.2 billion annually by 2028-29 and £625 million for construction skills, signals the Government’s commitment to equipping young people for a changing economy. In our inquiry, however, my Committee heard concerns about the defunding of level 7 apprenticeships, with witnesses including the British Chambers of Commerce warning that it could limit higher-level opportunities and deter participation. The absence of detail on the lifelong learning entitlement in the spending review is also of concern. The forthcoming post-16 skills and education White Paper must provide a unified and comprehensive vision for skills funding for young people and adults. I urge the Government to reconsider their decision on level 7 and to set out how additional funding will be allocated to maximise impact.

Finally, higher education faces significant challenges, with a 13% real-terms cut to direct teaching funding via the strategic priorities grant, which is now more than 80% lower than 2010-11 levels. My Committee has heard evidence of universities closing courses, reducing repairs and maintenance, and facing financial instability. The Office for Students’ 2025 report warns of declining performance, with recovery reliant on optimistic recruitment forecasts. While the modern industrial strategy promises better targeted funding, our universities—which are anchor institutions supporting thousands of jobs in every town and city that has a university—need urgent support. I therefore repeat the sector’s call for a transformation fund to stabilise universities and enable them to deliver the reforms that are necessary to ensure that they meet future skills needs and continue to contribute to economic growth through research and development and the role they play in building international collaboration.

The Education Committee will continue to scrutinise the work of the Department for Education carefully and hold the Government to account, ensuring that these funds deliver for every child and every learner. I urge Ministers to act swiftly on the promised White Papers, engage with our inquiries, and translate investment into meaningful change. Education is our most powerful lever to bring about a fairer, stronger country; let us ensure that it delivers.