The Year Ahead in Education: Trends to Watch in 2025–26

As schools and colleges across the UK prepare for the 2025–26 academic year, several emerging trends are poised to reshape the educational landscape. From policy reform and funding pressures to the rise of AI‑driven learning and evolving workforce needs, here’s what educators and stakeholders should watch closely.

1. Education Policy & Funding Shifts

• Reforming GCSE Resits The long‑standing policy requiring students to resit GCSE English and Maths until they achieve a grade 4 is under growing scrutiny. Only around one in five students now pass resits, prompting concerns around student wellbeing and effectiveness . A national review led by Professor Becky Francis, expected in autumn 2025, may propose alternatives like limiting resits or introducing pass/fail assessments akin to driving tests. [ The Week ]
  

• Broadening Post-16 Education Critics argue the current A‑level system remains deeply narrow, stifling interdisciplinary and vocational potential. Proposals for a broader diploma system—from previous administrations—are gaining renewed momentum. Such a model could combine academic, creative, vocational, and language studies to better prepare students for varied career paths. [Financial Times]
  

• Spending Pressures and SEN Funding While school funding sees a headline rise of £2.3 billion for 2025–26, cost pressures, especially around Special Educational Needs (SEN), significantly limit actual gains for mainstream schools. In real terms, per‑pupil funding may only rise by about 2.8%, yet rising costs are outpacing that growth. Meanwhile, new forecasts suggest an additional £2 billion will be allocated to SEND spending by 2027–28. [ Financial Times The Institute for Fiscal Studies ] .

• Skills England: Bridging the Skills Gap In June 2025, the Department for Education launched Skills England, a new executive agency designed to simplify access to training, better anticipate regional skills needs, and harness the Apprenticeship Levy more effectively. Expect intensified efforts in vocational education and employer partnerships throughout 2025–26. [ Wikipedia ]
  

• Children’s Wellbeing and Schools Bill This landmark legislation, currently progressing through Parliament, aims to elevate matters of child safeguarding, care support, attendance, and wellbeing—via measures on breakfast clubs, school uniform provision, and stricter rules on teacher misconduct, among others. [ Wikipedia ].
  

• Regional Language Acts

  In Wales, the 2025 Welsh Language and Education Act sets ambitious goals: to increase Welsh speakers to at least 1 million by 2050 and expand Welsh‑medium education options, categorised by proportional instruction goals (e.g. 80% Welsh in “primarily Welsh” schools). [ Wikipedia ]
  

  In Scotland, the Scottish Languages Act 2025 grants official status to Scots and Gaelic and supports their integration into curricula, though critics suggest the bill is more symbolic than transformative. [ Wikipedia ]

  
  

  

2. EdTech & Pedagogical Innovation

• AI in the Classroom Artificial intelligence is increasingly embedded in UK classrooms. Government-backed initiatives—such as a national “content store” offering AI‑ready lesson plans—are accelerating development. For example, Oak National Academy’s AI lesson‑planning tool Aila is already used by 20,000 teachers. AI usage among educators rose from 20% to 31% over the past year. [ The Times ]
  

• Personalised Learning and Micro-Credentials Generative AI and analytics are enabling bespoke learning paths and adaptive assessments. UK higher education is shifting to embed student support and employability within core programmes, while enabling tailored curricula centred on critical thinking and interdisciplinary skills [ HEPI ] Moreover, micro‑credentials and digital badges are gaining traction as flexible recognition of skills, aligning learning to career needs. [ Digital Learning Institute ] A 2025 study notes that 62% of parents believe traditional assessments fail to reflect true abilities, and 84% of teachers favour simulation‑based exams. [ GoStudent ]
  

• EdTech Sector Dynamics Europe-wide, edtech is undergoing consolidation, pivoting toward AI, integrated delivery systems, and employability-focused solutions, while product development is gaining momentum through faster iteration cycles. [ Openfield ]

3. Higher & Further Education Realities

• Tuition and Financial Strain Tuition fees in England are set to rise above £10,000 in real terms by 2025–26. Universities are under pressure to secure financial stability and demonstrate value amid wider reforms tied to fee increases [ Financial Times ]. Despite these increases, concerns persist: as many as 72% of institutions may end up in deficit, with small colleges particularly at risk of liquidity issues or closure [The Times Financial Times].
  

• Redefining Higher Education Value Universities will continue to emphasise student support, job‑readiness, and employability over traditional academic content alone. Courses and services may become more integrated, with student wellbeing and transferable skills recognised as credit-bearing learning outcomes [ HEPI ].

  
  

4. Preparing for a Shifting Labour Market

A UK‑based study of hiring trends shows that for AI and green‑job roles, employers are now placing higher value on demonstrable skills over formal degrees. Demand for AI skills has surged by 21%, and the wage premium for skills often outstrips that of degrees—a trend set to reshape education and job pathways [ arxiv.org ]

What This Means for Schools & Colleges

• Curriculum Design Expect shifts toward competency-based and digital assessment approaches. Institutions should also explore micro-credentialing and interdisciplinary learning models.

• Staff Development Teachers will require professional development in AI literacy and emergent digital pedagogies to support personalised learning.

• Infrastructure & Support Services Robust tech infrastructure and integrated student support systems will be vital. Schools should explore co-curricular approaches that are experiential, inclusive, and employability-oriented.

• Budget Planning With funding tight, institutions must strategically allocate resources—especially to SEN, digital tools, and wellbeing. Maintaining service quality amid cost pressures is critical.

• Partnership & Policy Engagement Build links with Skills England, local employers, and LEAs to navigate skills shortages and regional demands. Stay updated on legislative changes, such as the Wellbeing Bill and language acts.

Conclusion

The 2025–26 academic year demands adaptability and vision. From AI-driven classroom innovation and new assessments to critical support systems for wellbeing, special needs, and linguistic inclusion, schools and colleges stand at an inflexion point. The future belongs to institutions that can merge policy responsiveness, technological foresight, and pedagogical flexibility—all while keeping student growth and societal needs front and centre.