Labour has ignited a fierce political row after unveiling plans to overhaul how billions of pounds in school funding are distributed, with critics accusing the party of
importing “class war” into the classroom.
Under proposals to be published today, ministers want to means-test disadvantage funding based on parental income rather than relying on eligibility for free school meals — a move they say would better target support but which opponents argue could punish working families.
The reforms will be set out in a schools white paper by Education Secretary Bridget Phillipson, focusing on special educational needs and disabilities (SEND) and closing the attainment gap between pupils from different backgrounds.
At the heart of the plan is a redesign of how around £8 billion in disadvantage funding is allocated. Instead of a single indicator, such as free school meals, the new formula would take account of household income, how long families have been on low incomes, and where children live.
Labour says the approach would offer a more accurate picture of disadvantage. But the proposals have already drawn fire from the Conservative Party, who claim the policy reflects an ideological drive rather than practical reform.
Shadow education secretary Laura Trott said every child should receive the support they need but warned against policies that “narrow the disadvantage gap by dragging everyone down”.
The funding shake-up comes after Labour moved to impose VAT on private school fees, a decision that has further fuelled claims of a punitive approach towards middle-income families.
Ms Phillipson has rejected accusations that she is pursuing class-based politics. Speaking to Times Radio, she denied being a “class warrior” and said her priority was tackling what she described as profiteering in parts of the education system.
She pointed to the rapid growth of private equity involvement in specialist schools, arguing that costs have risen while quality has been inconsistent. “I’m really ambitious for every child in our country, regardless of background,” she said.
Alongside the funding changes, the white paper will outline sweeping reforms to SEND provision, aimed at easing pressure on councils that have struggled with rising costs. Ministers argue the current system is unsustainable after the number of children with education, health and care plans (EHCPs) rose from 240,000 to nearly 640,000 over the past decade.
Under the proposals, pupils with less complex needs — including some cases of autism and ADHD — would increasingly be supported within mainstream schools rather than through EHCPs. From 2029, EHCPs would be routinely reassessed when children finish primary school.
All teachers would receive training to support SEND pupils, while mainstream schools would share £4 billion in additional funding to help meet needs in the classroom.
Labour has described the reforms as a “golden opportunity” to break the link between a child’s background and their chances of success. But with political tempers already flaring, the battle over how schools should be funded looks set to become one of the most contentious education debates of the parliament. Photo by Malate269, Wikimedia commons.



