Words from our Policy and Advocacy Working group Hello and welcome to this term’s edition of the Policy Insight Newsletter. Over the past few months, the education landscape has shifted significantly and has shown signs of further change on the horizon despite receiving very little attention in the Autumn Budget. In this issue, we unpack key policy developments including the growing discussion around Year 8 reading reforms; the long-standing implications of the new Autumn Budget; concerns regarding the conjunctive mental health and not in education, employment or training (NEET) crisis affecting young people throughout the country and Ofsted’s new approach to school inspections. Thank you for taking the time and for staying engaged with the evolving policy landscape.
Autumn Budget implications for education
Chancellor Rachel Reeves. Image credit: Which? On Wednesday 26th November 2025 the Chancellor, Rachel Reeves, presented the Autumn Budget, alongside the latest economic forecast from the Office for Budget Responsibility. Thematically, this budget was set to focus on three core subjects: the NHS, government debt reduction, and the rising cost of living. Unfortunately, this meant that education continued to fall short in a long-list of governmental priorities despite some sparing positives. The Budget sparked warnings about a real-terms drop in school funding but confirmed that every secondary school in England will receive £1,400 to purchase new library books. The objective of this £5 million investment is to get more children and young people interested in reading for pleasure as part of the Government’s aim to make 2026 the “National Year of Reading” as set out by the Secretary of State for Education, Bridget Phillipson. This comes in tandem with the promises made by Ms Reeves in October to provide a library in every primary school in England by 2029, by committing £10 million to 1,700 primary schools who are currently lacking. Reception for this investment was warm and welcomed by teaching unions but raised concerns and questions of finding the space and staff to accommodate this positive initiative. In addition, Chancellor Reeves announced a plan to scrap the two-child benefit cap from April 2026 which marks a major shift for UK social welfare. This was a measure first introduced under the Conservatives in 2017 to ensure parents could only claim universal credit or tax credits for their first two children. The latest official figures showed that 1.6 million children (1 in 9) were living in families affected by the policy. At the time, the Child Poverty Action Group (CPAG) estimated that the policy pushed 350,000 children into poverty and 700,000 children into deeper poverty. However, following months of intense pressure from backbenchers, campaign groups and political opponents, the move to scrap the policy was made. This will increase the benefits for 560,000 families, who are estimated to receive higher universal credit payments averaging an extra £5,310 per year as a result of the £3 billion move, according to the Office for Budget Responsibility. Rachel Reeves was quoted stating:
In a similar sentiment to our charity vision that no child’s life chances should be limited by their socio-economic background, it is the belief of the Chancellor that children should not bear the brunt when families find themselves in difficult circumstances. By scrapping this policy, Ms Reeves has taken progressive steps to improve the foundational conditions (household income, stability, reduced stress) that allow for families to access further support and resources that could be the key difference in their children’s future opportunities at a time when it is much needed. The rising NEET crisis The latest data from the Office for National Statistics (ONS) has shown that around 947,000 young people aged 16-24 in the United Kingdom are currently classified as NEET (not in education, employment or training), equating to approximately one in eight young people (12.7%). This has sparked growing concerns amongst experts who believe these figures will continue to rise and hit one million, for the first time in over a decade. There are a multitude of factors contributing to these rising figures including the long-standing effects of the COVID-19 pandemic, systemic inequalities and AI drastically reducing companies’ dependence on entry-level jobs that often provided people with a start to their professional careers. These issues are compounded with a rise in mental health issues: a recent survey found that 31% of NEET young people cited poor mental health as a major challenge both for entering and progressing within the workplace. A report by the Joseph Rowntree Foundation argues that preventing young people from becoming NEET must be at the heart of all youth employment policy. With a 13 year history of supporting pupils facing disadvantages in an effort to stop them becoming NEET and achieving the necessary qualifications in English and maths, Action Tutoring is incredibly well placed to support future policies on reducing the number of young people becoming NEET at 16+. With close to a million young people at risk, and potentially many more to come, seeking opportunities to interject prior to disengagement taking hold is not just a charitable endeavour, it is a social and economical imperative for us all. Assessment policy: Year 8 reading test
This autumn, the Department for Education (DfE) announced that all pupils in England will sit a mandatory reading test at age 13 (end of Year 8). Supporters counter
that existing arrangements are inconsistent across schools, and that a national check will ensure equity and accountability, catching children slipping through the cracks just as they enter secondary school. Ofsted's new approach to school inspection From early November, Ofsted began inspections under its redesigned Education Inspection Framework - the most significant shift in accountability for more than a decade. The headline change is the removal of the single overall grade (“Outstanding”, “Good”). Instead, schools will receive a multi-area ‘report card’, giving a clearer picture across key domains. The shift away from headline grades opens up space for a more authentic assessment of how schools support their most disadvantaged pupils, including those eligible for the Pupil Premium. With inspectors looking more closely at curriculum coherence, targeted support, and evidence of impact, schools may feel increased pressure to demonstrate that their interventions are both strategic and effective. Philanthropy and policy - a force moving forward
Maro Itoje with Action Tutoring CEO, Jen Fox Philanthropy and policy can work hand-in-hand, aligning ambition with a commitment to long-term impact so that together they unlock opportunities and deliver interventions capable of driving lasting, society-wide change. Earlier this year, the collaborative potential was exemplified when Action Tutoring became the first UK-based education charity to be supported by Maro Itoje's foundation, The Pearl Fund. The Foundation was established to break the cycle of poverty for children in Nigeria and other African countries by providing access to transformative, high-quality education that powers potential. The fund is now expanding its successful mission to help pupils facing disadvantage in the UK. Our final thoughts Thank you for carving out a moment in your busy schedule to read our newsletter. With the festive period now behind us, we are looking ahead to a busy spring and the release of the Schools White Paper. We will return to your inbox once the paper is published, but in the meantime, I hope you stay well and have a wonderful few months ahead. Gabriel and Daniel
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