PolicyLens

Green - Education

Add GBP 8bn school funding

Increase school funding, including teacher pay, by around GBP 8bn.

Last updated: May 2026.

Read the policy-specific methodology note

Policy baseline

The Green manifesto proposes GBP 8bn extra for schools including teacher pay. Recruitment and retention are the main delivery questions.

  • Targets schools, teachers and pupils.
  • Pay rises may improve retention.
  • Productivity gains are long-run.

Core trade-offs

The direct beneficiaries are pupils and school staff. The costs fall mainly on taxpayers and other departments. The main economic question is higher pay may not solve workload issues.

  • Pupils and school staff gain most directly.
  • Costs fall mainly on taxpayers and other departments.
  • Key risk: higher pay may not solve workload issues.

Fiscal impact by 2028-29

+GBP 6.0bn to +GBP 14.0bn. Central estimate: +GBP 8.0bn.

  • Positive numbers mean net fiscal cost; negative numbers mean Exchequer savings.
  • Main channel is the scored tax, spending or delivery change.
  • Offsets depend on tax receipts, behaviour and pass-through.
  • Range reflects uncertain implementation and economic response.
  • This is not an official costing.

Economic impact by 2028-29

  • Jobs: Education hiring rises; shortages and retention problems may cap delivery.
  • Wages: Teachers, childcare staff or students gain; taxpayers fund the cost.
  • Prices: Childcare prices may fall if supply expands; wage pressure can offset subsidies.
  • GDP / productivity: Long-run gains possible; short-run GDP effects depend on staffing and quality.

Assessment

This is a real trade-off, not a free gain. Pupils and school staff benefit, while taxpayers and other departments bear most costs. Overall output depends on behaviour, capacity and pass-through.

Confidence: Medium-low. Higher on the policy target and fiscal channel; lower on behaviour, pass-through and economy-wide effects.

Main risks

  • Staffing shortage: Recruitment and retention can limit delivery.
  • Quality variation: Extra places or grants do not guarantee high-quality provision.
  • Long payback: Economic returns take years and are hard to score fiscally.

Safeguards

  • Target shortages and disadvantaged pupils.
  • Audit quality and staff retention.
  • Evaluate outcomes before expansion.

Academic evidence

Jackson, Johnson and Persico, Quarterly Journal of Economics, 2016

School spending outcomes

Higher school spending improved adult outcomes, especially for low-income children.

Supports long-run gains from education spending.

School Spending and Educational Outcomes (2016)

Chetty, Friedman and Rockoff, American Economic Review, 2014

Teacher effectiveness

High-value-added teachers are associated with better long-run student outcomes.

Relevant to teacher recruitment and quality.

Measuring the Impacts of Teachers (2014)

UK government evidence

Green Party of England and Wales, 2024

Green manifesto

The manifesto defines the tax, spending, climate, housing and public-service proposals modelled here.

Used to define the scenario, not as an official costing.

Manifesto for a Fairer, Greener Country (2024)

Department for Education, 2025

School funding statistics

DfE statistics provide the school-spending baseline and pupil-funding context.

Used to scale new education spending.

School funding statistics (2025)

HM Treasury, 2025

Spending Review baseline

Departmental baselines affect whether stated school funding is additional.

Supports the fiscal counterfactual.

Spending Review 2025 (2025)

Sources

Other Green policies

PolicyLens estimates are illustrative and should not be treated as official costings.