Committee publication · Estimate memoranda · 29 April 2026

Department for Education Main Estimate Memorandum 2026-27

From: Education Committee

Summary

This Department for Education Main Estimate Memorandum sets out DfE's spending plans for 2026-27, totalling £134.2 billion across resource and capital budgets. Key drivers include increases to core school funding, 16-19 education provision, early years entitlements, and the School Rebuilding Programme. The document reflects machinery of government changes transferring apprenticeships and adult skills to the Department of Work and Pensions.

Key findings

  • Resource DEL increases by £3.7 billion to £94.2 billion, driven by school budget increases, 16-19 funding additions, and expanded early years entitlements.
  • Capital DEL rises by £1.2 billion to £8.2 billion, with major funding increases for school maintenance, the School Rebuilding Programme (scaling up to deliver 500+ projects), and SEND reform.
  • Early years provision faces a forecasted demand-driven spending pressure of £393 million above initial budget.
  • Administration costs decrease by 0.5% (£2.8 million reduction) through efficiencies, though partially offset by employer national insurance contribution increases.
  • Machinery of government change transfers apprenticeships, adult skills, and Skills England budgets to DWP, with historic figures restated for comparison.

Tone

Procedural

Topics

public-financeeducation-schoolsearly-years-childcarehigher-educationfurther-education

Key actors

Department for Education, Department for Work and Pensions, Parliament, National Infrastructure Service Transformation Authority (NISTA), Office for Students, Student Loans Company, Teaching Regulation Agency, Standards and Testing Agency

Notable line

The budget for 2026-27 is as agreed in the Spending Review and has been driven by: • Increases in the core school budget • Additional 16-19 funding • An increase in the early years entitlement.

Key Quotes

DfE's priority outcomes are: • Best start in life – significantly improve child development at age 5. • Every child achieving and thriving – raise attainment for all children and young people, particularly the most disadvantaged …
Department for Education · Setting out departmental objectives
This is part of investing almost £20bn over the decade from 2025-26 to 2034-35 to deliver over 500 rebuilding projects across England within the existing School Rebuilding Programme and enabling a further …
Department for Education · School Rebuilding Programme investment commitment
The Department is currently forecasting a spending pressure against its initial budget for the financial year in respect of the expected demand for Early Years provision.
Department for Education · Identifying budget pressures
On 16 September 2025 a Written Ministerial Statement confirmed that responsibility for apprenticeships, adult further education, skills, training and careers, and Skills England, will move from the Department for Education to the Department for Work and Pensions.
Department for Education · Machinery of government restructuring
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Source · parliament.uk record ↗