More than one in six local authority-maintained schools were in deficit last year, with the total balance of these schools plunging a further £90 million into the red, according to the latest Department for Education figures.

Financial data published today shows that 17.8 per cent of maintained schools were in deficit in 2024-25, which is up from 15.3 per cent in 2023-24 and the highest proportion in the past 10 years.

The balance held by maintained schools in deficit has fallen from -£288,533,322 in 2023-24 to -£379,986,447 last year, meaning the combined deficit has risen by 32 per cent.

Of the 10,575 maintained schools that returned financial data to the department, 1,887 were in deficit (17.8 per cent).

This is up from 15.3 per cent the previous year, when 1,723 schools were in deficit out of 11,926 that provided financial returns.

And it is more than double the proportion (8.8 per cent) in deficit in 2021-21.

Deficits by phase

The data also shows that 21.2 per cent of pupil referral units are now in deficit - up from 18.7 per cent the year before.

The proportion in deficit increased from 14.7 per cent to 17.4 per cent among primaries, and from 13 per cent to 17.6 per cent in secondaries.

In special schools, the percentage in deficit increased to 18.1 per cent in 2024-25, up from 15.5 per cent the previous year.

Nursery schools were the only phase with a decrease. However, they were still the most likely to be in deficit, with the proportion standing at 28 per cent - down from 32.5 per cent a year earlier.

The overall number of rising deficits in maintained schools comes amid a similar trend for trusts running academies.

Earlier this year, a report found that the proportion of academy trusts reporting deficits has tripled in just three years.

In 2021, 19 per cent of trusts reported in-year financial deficits, but as of 2023-24, a majority of 58 per cent of trusts were said to be in the red.

The Kreston UK Academies Benchmark Report 2025 also found trusts increasingly had to eat into their reserves for 2023-24 as costs for schools remained above inflation.

Total funding rises by 0.3%

Today’s DfE data also provides a breakdown of school income data.

In the financial year 2024-25, the total income of local authority-maintained schools was £25.8 billion, which is 0.3 per cent higher than in 2023-24.

Due to falling rolls and school closures, this equates to £8,180 per pupil, which is 8.1 per cent higher than in 2023-24.

The DfE put the difference down to falling numbers of pupils and schools.

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