A report from Swoop Funding has analysed the debt profiles of over 50,000 UK businesses and found that the education sector holds one of the lowest levels of business debt across all industries, totalling £253.9 million.
The UK education sector is currently navigating a complex financial landscape marked by both increased funding and mounting budgetary pressures.
For the 2025–26 financial year, the Department for Education allocated over £63.9 billion in core funding to English schools, representing an 82% rise since 2010–11 and a per-pupil allocation of £8,210, up 3.7% from the previous year.
However, after adjusting for inflation, this equates to only a 1.2% real-terms increase, while school costs are projected to rise by 3.6% in the same period2.
A recent survey also found that 94% of secondary schools and 76% of primary schools expect to face budget shortfalls in 2025–26, with many institutions warning of potential staff redundancies and cuts to educational provision due to the gap between funding growth and rising expenses.
This environment of constrained budgets and rising operational costs may help explain the sector’s cautious approach to borrowing as schools strive to manage financial risks amid ongoing funding challenges.
This new report, which reviewed financial data from 50,651 UK businesses, breaks down total debt levels by sector, region, business age, and ownership demographics. While sectors such as retail, manufacturing, and professional services show significantly higher debt burdens, the education sector ranks close to the bottom of the debt table.
According to the findings, the retail and wholesale trade sector tops the list with £2.73 billion in debt, followed by manufacturing (£2.59 billion) and information and communication (£1.89 billion). In comparison, education’s total business debt stands at £253,965,382, highlighting a markedly different financial footprint.
This lower figure may reflect the structural and operational differences within the education sector compared to more capital-intensive industries, where borrowing is often required to manage inventory, invest in infrastructure, or navigate volatile markets.
Here is how the education sector compares to others in terms of total business debt:
| Industry | Total debt |
| Wholesale and retail trade | £2,730,289,471 |
| Manufacturing | £2,593,611,966 |
| Information and communication | £1,891,378,847 |
| Professional, scientific and technical activities | £1,723,132,641 |
| Construction | £1,667,616,094 |
| Administrative and support service activities | £1,452,437,867 |
| Real estate activities | £1,229,056,745 |
| Financial and insurance activities | £1,205,079,894 |
| Accommodation and food service activities | £1,104,735,415 |
| Transportation and storage | £699,928,663 |
| Human health and social work activities | £636,755,180 |
| Other service activities | £628,402,058 |
| Arts, entertainment and recreation | £503,385,716 |
| Education | £253,965,382 |
| Water supply, sewerage, waste management and remediation activities | £135,050,155 |
