Yesterdays Budget saw the introduction of funding for various areas within education. Let’s talk about what that means going forward
Budget 2025: Let’s Talk About the Impact on Our Schools and Student Well-being
By Lily Blakeledge
27th November 2025
As professionals dedicated to mental health in education, we know that policy changes aren’t just about spreadsheets—they deeply affect the lives of our students. Rachel Reeves Budget 2025 has given us plenty to digest, outlining major shifts that will hit schools over the next year and beyond.
What we’re seeing is a clear focus on tackling the non-academic barriers that block learning and well-being. This means more responsibility, but also more opportunities, for those of us on the ground providing pastoral care and support.
We’ve summarised the key areas for you and, crucially, developed some actionable steps so we can all start preparing now.
The Big Picture: A Year of Change and Investment
The headline investment in education is substantial (over £95 billion in Resource DEL for 2025-26), but the real story for us is the structural reform. We can expect a year defined by social investment and structural reform, aiming to break down barriers to mental health and engagement.
What This Means for Our Students: Welfare and Dignity First
These measures are fantastic news for addressing poverty and the anxiety it causes.
- Expanded Free School Meals (FSM) & Breakfast Clubs: This is huge. Expanding FSM to all pupils with a parent on Universal Credit is expected to lift 100,000 children out of poverty. Expect increased uptake, which means we need to ensure our catering and dining systems handle the numbers with zero stigma. The rollout of free breakfast clubs (starting with 2,000 schools next year) gives us a vital tool for ensuring a calm, positive start to the day.
- Lower Uniform Costs: Finally! New legislation will limit the branded items schools can demand. This is a direct hit on financial anxiety for families and helps pupils feel a greater sense of belonging without cost being a barrier.
- Early Years and Childcare: The massive investment here (£8 billion in 2025–26) and the review of provision should help simplify things for working parents, which ultimately eases home stress and benefits our youngest learners.
The Mental Health and SEND Agenda
The mental health conversation often happens around the budget, but these related reforms have a direct impact on our work:
- SEND Reform is Coming: The government promises to set out substantial plans for SEND reform early in the new year. We need to be ready for the start of a journey toward a more sustainable, perhaps devolved, system. Now is the time for proactive auditing and dialogue with our Local Authorities.
- Tackling Youth Inactivity: The independent review on rising youth inactivity is a welcome spotlight on young people (16-24) who are NEET (Not in Education, Employment, or Training). This review will inevitably feed back into how schools manage pastoral support and alternative pathways in the secondary phase.
- The National Year of Reading: A small but welcome measure—£5 million for secondary school books in 2026-27. Let’s use the next year to plan how a refreshed library can boost reading for pleasure and be a valuable, calming mental health resource.
Skills and Future Pathways
If you’re in a secondary school, pay close attention to the focus on technical education: The new Youth Guarantee and Growth and Skills Levy signal a major push toward apprenticeships and technical education. We need to make sure our careers guidance is absolutely up-to-date and reflects these significant shifts to ensure students can access the right path for their future.
Our Takeaway: Schools as Key Welfare Hubs
This budget makes it clear: schools are now firmly positioned as key delivery partners in the social agenda. For AMHIE members, this means our expertise in early intervention, welfare support, and trauma-informed practice is more valuable than ever.
The next year is about planning. We must translate these investments and reforms into tangible, positive outcomes for the mental health of our pupils.
We have put together some actionable steps which you may take now to prepare your setting for the upcoming changes, this list is not exhaustive but it does provide some additional information for you should you wish to access it.
Support for Your School: Don’t Navigate Big Changes Alone!
We know the Budget 2025 is landing on your desk with a significant to-do list: planning for expanded Free School Meals, anticipating major SEND reform, and aligning careers advice with the new skills agenda. This level of structural change, combined with the persistent stress of managing student well-being, motivation, and behaviour, can feel isolating and frankly, overwhelming.
You shouldn’t have to decode complex DfE policy shifts or implement new social measures like the expanded FSM eligibility in a vacuum.
That’s where AMHIE steps in to support you.
Joining AMHIE instantly helps you Reduce Risk and Stress related to the Budget’s new mandates. We translate policy like the impending SEND reforms and the new uniform cost legislation into clear, actionable guidance, ensuring you can focus on the mental health support itself, not just the compliance.
Eliminate professional isolation by tapping into our community for Expert Support and shared insights. Need to know the best way to implement breakfast clubs without stigma? Looking for effective interventions aligned with the Pupil Premium funding boost from the FSM expansion? Our members provide the Clarity and Direction needed for best practice in pupil well-being and engagement.
Your membership ensures you stay ahead of the curve with confidence, supported by peers who understand the unique challenges of embedding positive mental health during a period of major structural reform.
Ready to connect with a supportive community and gain practical clarity on the Budget’s impact? Get immediate access to guidance and peer support—sign up for your AMHIE membership today!
#AMHE #UKeducation #SchoolMentalHealth #Budget2025 #SENDReform #UKschools