A damning new NASUWT report, Where Has All the Money Gone?, reveals how billions of pounds intended for education are being siphoned away from frontline teaching, leaving schools struggling while private firms and executives profit.
The findings expose a pattern of financial mismanagement, excessive executive pay, and profiteering in SEND provision, supply teacher agencies, exam boards and academy trusts.
Against a backdrop of ministers claiming there is no additional money for a fully funded pay rise for teachers and that schools may have to fund this from already eye-wateringly tight budgets, the NASUWT has identified billions of pounds across the sector that are being funnelled into private companies and agencies.
The NASUWT believes the Government needs to act in a strategic way to grasp the nettle and hold to account the private sector which is profiteering from taxpayer funds.
The Union is calling for greater transparency in spending across the sector, stronger regulation to prevent profiteering and for teacher pay rises recommended by the STRB to be fully funded.
Key Findings: Where Is the Money Going?
- Academy Trust CEO salaries are soaring – Some chief executives are earning over £500,000, far exceeding the Prime Minister’s salary.
- Consultancy spending is skyrocketing – Academy Trusts spent £412 million on consultants in 2022-23, nearly double the amount five years ago.
- Profiteering in SEND provision – Private SEND schools are charging up to £61,500 per pupil, compared to £23,900 in state-funded schools, with some companies making tens of millions in profit.
- Supply teacher agencies cashing in – Schools spent £1.2 billion on supply teachers in 2022-23, with agencies pocketing £300 million in fees.
- Councils crippled by SEND bill – As councils struggle to provide provision they are increasingly forced to turn to the private sector. Calderdale Council saw spending rise a 477% in four years, from £699,409 in 2020-21 to £4,035,607 in 2023-24.
“This report lays bare the shocking reality of school funding in England. While teachers struggle with inadequate resources, excessive workloads, and real-terms pay cuts, private firms and academy executives are lining their pockets with billions of pounds of public money.
“It is indefensible that some Academy Trust CEOs are earning over half a million pounds while schools are forced to cut staff and the services they provide to support children’s education.
“The Government must act now to ensure that every pound spent on education delivers real value for schools, teachers, and students. Ministers are putting out the message that there is no money for a fully-funded teacher pay rise but billions of pounds is being wasted.
“We want urgent reforms to bring transparency and accountability to the education budget. The Government must introduce stricter regulations to prevent profiteering, ensure full and fair funding for teacher pay, and stop the exploitation of supply teachers and SEND provision.
“Teachers should not have to fight for the resources they need to do their jobs.
“The NASUWT will continue to campaign for fair funding and proper accountability, ensuring that public money is spent where it matters most – in the classroom."
Specific Examples of Excessive Spending
- Bury Council’s SEND spending crisis – Spending on independent special schools rose from £5.3 million in 2018-19 to £10.6 million in 2022-23, forcing the council to place significant numbers of pupils in costly private provision.
- Academy Trust CEO pay explosion – The number of Academy Trusts paying at least one trustee over £150,000 has jumped from 101 in 2015-16 to 775 in 2022-23.
- Consultancy fees draining school budgets – Academy Trust spending on consultants has almost doubled in five years, reaching £412 million in 2022-23, with £69 million spent on non-educational consultants.
- Supply teacher agencies profiting from crisis – Schools spent £974 million on supply teachers in 2021-22, with agencies taking £300 million in fees, while supply teachers remain stuck on stagnating pay rates.
