8 things you wish you knew about school budgets
Here’s a breakdown of some of the most important (and often overlooked) insights that can transform how you approach schools, their finances, and their decision-making processes.
1. Financial years vary between school types
Not all schools operate on the same financial calendar. Local Authority maintained schools typically follow the April to March financial year, in line with local councils. However, Academy schools use a September to August financial year, aligned more closely with the academic calendar.
This difference is crucial, particularly when you’re trying to time communications around budget availability. That “end of financial year” urgency you might expect in March? It may apply to one school and not another. Knowing what kind of school you’re speaking to can help you time your engagement perfectly.
2. Governing boards can’t approve deficit budgets
By regulation, Governing Boards are not permitted to approve a budget that goes into deficit.
This means that, at least on paper, every school should be running with a surplus budget throughout the year. Of course, this doesn’t mean every school is flush with cash but it does mean they’re required to make ends meet, even if that involves painful cuts or delays.
This constraint explains why even small purchases are scrutinised and why schools can appear risk-averse. They need to ensure every pound is accounted for and doesn’t push them into a deficit position, regardless of how attractive or needed a new solution might be.
3. Spending approvals can be a lengthy process
Every school has financial controls and approval processes. A common policy is that spending above a certain threshold requires sign-off from the Governing Board or the Senior Leadership Team (SLT). This amount will vary from school to school.
This has direct implications for sales even if a school is keen to buy as the internal process may slow things down. Timelines can be extended, particularly if decision-making meetings are infrequent (e.g. termly). Patience, persistence, and strategic timing are key. Speak to the team at Buzz Education for advice on how to overcome these challenges.
4. Not all school funding is flexible
Schools receive a mix of unrestricted and ring-fenced funding. Some funding streams, like Pupil Premium or SEND (Special Educational Needs and Disabilities) allocations, are legally bound to specific purposes. Others, like the core funding, offer more freedom.
If you’re offering something that could help under a specific category (e.g. wellbeing for disadvantaged pupils), aligning your offer with those restricted pots could increase your chances of success, but only if your proposal clearly maps to the funding’s intended purpose.
5. Budget planning often conflicts with academic planning
There’s often a disconnect between the academic year (September–July) and financial planning cycles. For example, schools might want to launch a new programme in September—but may not know their final budget position until much later.
This mismatch can affect school plans. It also explains why some schools seem to show interest in the summer term but don’t commit until autumn, or why initiatives sometimes launch mid-year. Again, patience and perseverance can be needed.
6. Schools must budget multiple years ahead
Most schools must submit three year budget forecasts. This forward planning requirement means decisions aren’t just about current year costs, but also about sustainability across future years.
If your solution includes multi-year pricing or variable renewal costs, this could become a sticking point. Schools may love your offer today but hesitate if they can’t guarantee long-term affordability.
7. Budget holders aren’t always decision-makers
Even when you’re speaking with someone who seems to have control—like a Head of Department or Business Manager—they may not be the final authority on spending. Larger purchases may still need SLT or Governor sign-off, even if initial interest is strong.
This is why “great conversations” don’t always translate into fast decisions. Understanding the internal hierarchy and who ultimately controls the purse strings can help you shape your pitch accordingly. Think of your education contacts as a combination of ‘influencers’ and ‘decision makers’. Knowing who you are talking to can help the sales process run more smoothly.
8. End-of-year spending isn’t always a “spending spree”
You might hear about the “use it or lose it” mindset in schools nearing the end of the financial year but this isn’t a guarantee. Some schools will indeed look to allocate remaining funds to avoid a surplus being clawed back, but others are cautious, especially if forecasting tight years ahead. Post Covid, many Local Authorities have changed their ‘claw back’ rules too, so schools can keep hold of their surpluses. However, this is a positive for suppliers, as schools will be more financially free in their new cycle.
Rather than banking on last-minute orders, it’s better to position your offer well in advance and be prepared for a mix of quick wins and long-game strategies.
Final thoughts
School budgeting is complex, cautious, and constrained by a mix of regulation, accountability, and long-term planning. But when you understand the why behind the process, you can approach schools with empathy, precision, and better timing.
The team at Buzz Education have many years of experience supporting education suppliers, and we are here to advise on how to maximise your marketing spend and ROI.