**Cardiff Schools Face Mounting Financial Deficits as Councillors Voice Concern**
An increasing number of schools across Cardiff are poised to enter financial deficit, sparking discussion amongst local council leaders about the sustainability of education funding in the city. Over recent years, the number of schools forecasting or operating with negative budgets has steadily climbed – and current projections suggest this upward trend will accelerate by 2026.
During a meeting of Cardiff Council’s children and young people scrutiny committee on Tuesday 10 June, officials reported that as many as 55 schools in Cardiff may apply to operate with a deficit budget by March 2026. This marks a significant escalation compared to previous years; 38 schools reported deficits in the academic year 2023-24, rising to 46 the following year. If the council’s estimates hold, the spring of 2026 could see the highest number yet.
The crisis is not limited to a single educational phase, though primary schools appear the most affected. Of the projected 55 deficit schools, 45 are primary, nine are secondary, and a single school caters for children with special needs. Financial difficulties have become particularly entrenched for some: figures reveal that seven Cardiff schools have struggled with deficits for three consecutive years, while 22 have been in the red for two years and 15 for one year.
Those monitoring school finances attribute the mounting difficulties to a complex mix of challenges. Cardiff Council cabinet member for education, Councillor Sarah Merry, explained that the ongoing financial pressure is just one issue schools are grappling with in the aftermath of the Covid-19 pandemic. She pointed to a range of factors, from fluctuating attendance rates and the growing prevalence of additional learning needs, to the long-lasting economic pressures being felt by families within the city.
“There are certainly issues that have arisen post-pandemic but it’s still unclear how much those are direct consequences,” remarked Cllr Merry. “Financial pressures on families absolutely play out in our classrooms, but so does declining pupil enrolment in some primary schools.”
According to Ian Allwood, Cardiff Council’s head of finance, there are a multitude of reasons why so many schools are facing shortfalls. He cited not only the challenge of predicting future funding levels, but also the rising cost of delivering educational outcomes amidst increasing complexity in children’s needs. At present, the council is in ongoing discussions with schools about their 2025-26 budgets. The final figures, Allwood noted, may yet change as these talks progress.
To manage the situation, Cardiff Council has introduced a formal protocol for schools experiencing deficits, designed to give authorities greater oversight and to encourage collaborative financial planning. Nonetheless, concerns remain about the process’s effectiveness. Conservative committee member Cllr Calum Davies questioned whether the protocol is delivering, citing the near-doubling of deficit schools over the past few years and the tendency for some institutions to remain in the red year after year.
Mr Allwood defended the collaborative approach, stating: “The protocol is not about punitive measures. Instead, it’s about improved reporting and mutual trust between schools and the local authority. This is not a challenge schools can address alone.”
Beyond direct educational expenses, schools are grappling with other rising costs. Higher salaries for teachers, increased utility bills, more expensive building repairs, and growing reliance on supply and agency staff all contribute to the squeeze. With budgets stretched thin, schools are forced to make difficult choices about where to allocate shrinking resources.
Cabinet member for finance, modernisation, and performance, Councillor Chris Weaver, added that schools – alongside children’s and adult services – have repeatedly been prioritised for limited extra council funding in recent years. “It’s a topic we return to frequently at both governing body and budget forums,” he said, underlining just how pressing the situation has become for Cardiff’s education system.
As Cardiff’s schools look toward another challenging financial year, it remains to be seen whether current support protocols and budget planning can alleviate the mounting pressures. For now, the issue is likely to remain a focal point of council deliberations and a major concern for the city’s families, teachers, and education leaders.