This week I highlight new DfE guidance on AI, review the impact of this week’s Spending Review on schools and confirmation of the delay to the changes to the Ofsted inspection progress.

DfE releases new AI guidance
The DfE has released new guidance to help schools make informed decisions about using artificial intelligence (AI). The guidance explores the potential of AI to reduce workload and enhance learning while also highlighting the importance of maintaining human oversight and discretion. The DfE announced an additional £1 million investment to push the development of AI tools, specifically designed to support teachers with tasks such as marking and providing detailed, personalised feedback to students.

Impact of the Spending Review on schools
This week the Chancellor set out Government spending plans for the next three years which included boosting the schools budget, extending the rebuilding programme and increasing Ofsted’s funding. However the funding increase will only amount to a roughly 1% average real-terms increase to per-pupil funding each year and it also has to cover cash for SEND reforms, the free school meals expansion and next year’s pay award. The headlines are detailed below:

• £4.7bn for schools – the core schools budget will increase from £64.8 billion this year to £69.5 billion in 2028, a cash-terms increase of £4.7 billion by the end of the spending review period. However, this includes the £410 million annual cost of the recently announced extension of free school meals, and the £615 million allocated earlier in the Spring to contribute to next year’s 4% teachers’ pay rise. Once schools’ rising costs are taken into account, the injection works out as a 1.1% average annual real-terms increase over the spending review period.
• SEND reforms – the Government has set aside £760 million for reform of the SEND system, with most of this falling in the 2026-27 year. The DfE confirmed to Schools Week that this money is part of the increase in the core schools budget. However, there is a continued rise in the number of pupils with special needs and councils are pushing for high-needs deficits to be wiped.
• Schools white paper in the Autumn (and not just for SEND) – the Government will set out its SEND reform plans in a schools white paper, to be published in the Autumn. Schools Week has reported that it understands that the white paper will be broader than just SEND and will include wider school reforms.
• Schools rebuilding programme – the Government has already committed to ramping up the school rebuilding programme, expecting to spend around £2.4 billion per year for the programme over the spending review period. However, it hasn’t said how many schools will now be targeted. Spending on school maintenance and repairs will also rise by around £400 million to around £2.3 billion a year by 2029-30.
• Ofsted funding boost for MAT inspections – despite reports Ofsted was unlikely to secure more cash at the spending review, documents show its budget will rise from just under £140 million in 2025-26, to nearly £159.4 million in 2026-27. This will fund the inspectorate to support the Government’s mission to break down barriers to opportunity, including developing and implementing multi-academy trust inspections to increase accountability of MAT leaders.
• Nurseries and libraries cash – the Government confirmed it has allocated £370 million across four years to deliver more school-based nurseries in spare primary classrooms. The DfE previously announced £37 million for the first tranche of projects. Ministers have also allocated £132.5 million of dormant assets to invest in school libraries and facilities to support disadvantaged young people to access music, sport, and drama.

Overall, the DfE’s total budget will increase by £109.2 billion by 2028, equivalent to an annual average real terms increase of 1.5%, which puts the DfE behind most other areas of spending. However, the Dfe has a much larger overall budget than many other Government departments and Education got the fourth highest increase.

Ofsted inspection plan delay
The Education Secretary has written to the Chief Inspector of Ofsted expressing her disappointment that Ofsted has delayed its consultation response on changes to the inspection system, with new inspections due to start in the Autumn term. Sir Martyn Oliver in his letter confirming the delay advised that it would hold briefings for school leaders and teachers in the first half of the autumn term, while routine inspections are on hold. Ms Phillipson’s letter also confirmed that Dame Christine Gilbert has been appointed as the new chair of Ofsted.