- Better rates on agency staff through new government-backed
deal - so every penny delivers opportunities for young people
- New tool will support schools to get the best interest rates
on the £6 billion held in reserves to further invest in children
- Follows major steps to tackle child poverty, and in turn
alleviate pressure on schools
Schools and trusts will be supported to save millions over this
Parliament through a new programme to tackle avoidable costs like
high supplier mark-up and wider barriers to getting the best
value for money from their budgets - so every penny is invested
in delivering opportunities for young people.
It comes alongside action from government to directly tackle the
£1.4 billion schools spent in 2023/24 on agency staff. The
government's new agency supply deal – which schools will be
expected to use - will cap the rates charged to schools and help
them avoid excessive mark-up costs.
Schools will receive support through updated digital tools
including to make it easier for them to check whether they are
getting the best deals on their interest rates – earning money
which could be further reinvested into education - as well as to
help to benchmark costs across the school estate to help them
make informed spending decisions.
It builds on the work that school leaders and staff are already
doing to maximise their budgets and ensure funding is delivering
better outcomes for children, alongside action by government to
help schools reduce costs through the government's energy deal
pilot scheme which identified a 36% saving on average,
The programme will also work to help the sector make the most of
financial and physical assets, including use of the £6 billion
held in reserves, unlocking further funds for schools and trusts
that can be used to improve the experiences of children, such as
investment in technology.
The move is part of the government's Plan for Change and comes on
top of new measures to transform the life chances of thousands
more children including by scrapping the two-child benefit limit,
rolling out free breakfast clubs and extending Free School
Meals.
Schools Minister, said:
“From day one, this government has worked in partnership with
schools to break the link between children's background and their
opportunities in life.
“This programme will lift some of the pressures that have built
up on schools in recent years and builds on major steps we have
taken outside the classroom, like scrapping the two-child benefit
cap.
“I know just how hard schools and trusts are already working to
seize opportunities to maximise value from their budgets. We want
to share that best practice and support them to go even further –
with government action to tackle the national drivers of costs,
alongside local action from schools and trusts, so every penny is
invested in children to achieve and thrive.”
The initiative forms part of the new Maximising Value for
Pupils programme launched today (4 December) which is shared
endeavour between government, schools and trusts to address
barriers preventing them from getting best value from their
budgets. The government is taking on key spending areas where
collective buying power can secure better deals, allowing schools
to continue to invest more in frontline provision that makes the
greatest difference for children.
Schools and trusts will be urged to take advantage of the deals
and support on offer through the new programme in the new year so
they can reap the rewards and get best value for money.
Despite deeply challenging choices about public spending, school
funding rose significantly this year (2025/26) and will rise
again next year - increasing by £1.7 billion in 2026-27 meaning
every child, in every classroom, in every corner of the country
will be given the opportunity to succeed.
From a revitalised curriculum, free breakfast clubs, expanded
free school meal offer and with attendance on the rise and more
teachers in our classrooms, this government is putting education
back at the heart of national life and breaking the link between
background and success.
The government will build on the programme over time, including
adding new services to support schools to buy technology and
maximise use of their financial and physical assets including to
support their communities.
-ENDS-
Notes to Editors
- The Crown Commercial Service will launch a new framework in
June 2026 which will include negotiated rate caps on teacher
supply agency costs, providing significant savings for schools
and trusts.
- Government will also be going further still by setting
greater expectations that unless schools and trusts are achieving
better value for money, they must use the new framework, sending
a clear signal to suppliers to get with the programme and offer
the best value rates for schools.
