Committee publication · Estimate memoranda · 29 April 2026

Ofsted Supplementary Estimate Memorandum 2026-27

From: Education Committee

Summary

Ofsted's supplementary estimate memorandum for 2026-27 requests total net spending of £239.786m, a 10% increase (£21.3m) from the prior year. Key funding drivers include £9.7m for pay pressures, £4.8m for Multi-Academy Trust inspection framework development, £3.8m for professional access routes, and £3m for IT systems to enhance regulatory capability. Additional £7.8m was secured to increase early years inspection frequency and shorten post-registration timescales.

Key findings

  • Total budget increase of £21.3m (10%) from 2025-26, driven primarily by Spending Review 2025 settlement plus additional DfE funding for early years inspections
  • Resource DEL increased £23.314m (14%) to £184.509m, with ring-fenced depreciation reclassified from Resource DEL to Resource AME per HM Treasury decision
  • Capital DEL decreased £2.5m (-31%) to £5.5m, offset by IFRS 16 leased assets increase of £1.7m (5%) to £36m
  • Income limit increased £14.495m (23%) to £78.007m, reflecting £9.4m rise from children's homes fees and charges plus £2.9m additional DfE funding for early years quality improvements
  • Key concerns identified: attainment gap between disadvantaged and non-disadvantaged pupils remains 'stubborn'; severe school absence nearly triple pre-pandemic levels; SEND children 4.5 times more likely to be severely absent

Tone

Procedural

Topics

public-financeeducationearly-yearschild-safeguardinginspection-regulation

Key actors

Ofsted, Department for Education (DfE), HM Treasury, Sir Martyn Oliver (Accounting Officer), Dame Christine Gilbert (Chair), His Majesty's Chief Inspector (HMCI), Department for Work and Pensions (DWP), Ministry of Justice (MoJ)

Notable line

… severe absence is almost three times higher than before the pandemic. Notably, children with SEND are four and a half times more likely to be severely absent.

Key Quotes

Our principal objective when carrying out our functions is to make sure that organisations providing education, training and care services in England do so to a high standard for children and students.
Ofsted · Statement of core purpose
… the attainment gap between disadvantaged and non-disadvantaged children remains stubborn, with poorer pupils lagging months behind their peers.
His Majesty's Chief Inspector / Ofsted · 2024-25 Annual Report findings on educational inequality
… severe absence is almost three times higher than before the pandemic. Notably, children with SEND are four and a half times more likely to be severely absent.
His Majesty's Chief Inspector / Ofsted · 2024-25 Annual Report findings on school attendance
When children are too long out of school, it makes them more likely to challenge teachers and disrupt the learning of others.
Ofsted · Analysis of impact of severe absence on classroom behaviour
View original document →

Source · parliament.uk record ↗