Investing in Education is Investing in England’s Future. Pt 2

In Part 1 'Schools at financial breaking point', and why England Cannot Afford to Let Education Run on Empty.

The debate over school funding in England is often framed purely as a cost to taxpayers. However, economic evidence increasingly shows that investment in education delivers long-term benefits for workers, businesses and the wider economy.

Workers with higher qualifications consistently earn substantially more over their lifetimes

The Organisation for Economic Co-operation and Development (OECD) data shows that England has one of the largest earnings gaps in the developed world between workers with low qualifications and those with upper secondary or degree-level education. Workers with higher qualifications consistently earn substantially more over their lifetimes, while people with fewer qualifications face lower pay, greater insecurity and fewer opportunities.

That creates an important national challenge. If education delivers strong economic returns, underfunding schools risks weakening England’s future workforce and productivity.

Teacher recruitment and retention remain among the biggest pressures facing schools in England. While the government accepted a 4% teacher pay award for 2025/26, unions and school leaders argue that pay alone is not solving the wider workforce crisis.

Starting salaries for qualified teachers in England are now at least £32,916 outside London. In Scotland, starting salaries are higher at more than £33,500, while experienced classroom teachers can earn over £50,000. In Wales, recent agreements have also delivered pay increases aimed at improving recruitment and retention.

Despite these rises, many schools in England continue to struggle to recruit specialist teachers, teaching assistants and soaring Special Educational Needs and Disability (SEND) staff, particularly in expensive parts of the country where housing costs remain high.

The Institute for Fiscal Studies has warned that while overall school spending has increased in recent years, much of that increase has been absorbed by rising SEND costs and inflationary pressures. As a result, many schools continue to face difficult decisions over staffing, curriculum provision and support services.

Warnings of Skill Shortages

Business groups have also repeatedly warned about skills shortages across sectors including engineering, health, technology and construction. Education experts argue that weakening school provision today risks creating greater economic problems tomorrow.

Stephen Morris of the Workers of England Union said:

“The British government cannot build a strong economy on short-term thinking. Investment in education is investment in skills, productivity and opportunity. The evidence clearly shows that better education leads to stronger earnings, better employment prospects and greater economic resilience. “At the same time, teachers and support staff must be properly valued. England cannot expect schools to compete internationally while many staff struggle with workload pressures, recruitment difficulties and rising living costs.”

The Workers of England Union continues to highlight that education funding should be viewed as part of England’s long-term economic strategy rather than simply an annual spending commitment.

School standards, workforce stability and economic growth are closely connected. If continued British governments fail to invest properly in education, the long-term cost to the economy may be far greater than the savings made in the short term.

References

(OECD, Education at a Glance 2025: United Kingdom, Institute for Fiscal Studies, Annual report on education spending in England 2025/26, Department for Education, Teacher pay award 2025/26, Educational Institute of Scotland salary scales 2025/26, Welsh Government teacher pay settlement information 2025/26, Confederation of British Industry reports on UK skills shortages, National Foundation for Educational Research, Teacher recruitment and retention in England.)

Stephen Morris
General Secretary 
Workers of England Union