Six schools in Merthyr Tydfil have been labelled as “high” financial risk for the upcoming school year, sparking concerns across the community. A recent council report has categorised these schools into a worrying “red” zone for financial risk from 2025-26. While 75% of the schools in the area fall into either the red or amber (medium to high risk) categories, only a handful are in the lower risk categories.
The financial pressures are mounting—these schools need to plan for a deficit but are working on recovery strategies. Some schools have a plan in place to balance their budgets by the end of 2025-26, and discussions are underway to stabilise others by identifying savings opportunities.
The situation isn’t just about numbers—job cuts are a part of these recovery plans, affecting 57 positions including teachers and support staff. Most of these roles are on fixed-term contracts, but nine redundancies have already been necessary. As unfortunate as job losses are, these measures are deemed necessary to balance the budgets without compulsory redundancies.
Even with a better-than-expected local government settlement for 2025-26, schools are still facing a funding reduction of over 6%, after previous cuts. Some schools have had to make further tough choices, like reducing spend on technology, agency cover, and building maintenance.
The aggregate school balance by the end of March 2026 is projected to hit a deficit of £889,000. With the pressure on, the situation underscores a broader trend across Wales of increasing deficits, staff cuts, and reduced services in schools.
Despite the challenging financial outlook, local leaders and school heads are committed to navigating these tumultuous waters in hopes of returning to stable ground. Keep an eye out for updates as these schools work to overcome their financial hurdles.