Free Schools Waste £325m on Failed Projects Across England

Published: 11 December 2025. The English Chronicle Desk. The English Chronicle Online.

Conservative governments spent £325 million on 67 free schools that subsequently failed or vanished entirely, highlighting fundamental flaws in policy decisions over the past decade. This expenditure forms part of a broader £10 billion investment committed between 2014–15 and 2023–24 to create new school buildings, significantly outweighing the £6.8 billion spent on refurbishing existing schools, a discrepancy critics argue left numerous school facilities in a state of decay across England.

The free schools initiative was introduced by Michael Gove as education secretary in 2010, allowing groups and organisations to bid for central government funding to open new schools. While several schools such as the Michaela Community School in inner London achieved success and garnered recognition for innovation, dozens of others became “ghost schools,” either never opening or ultimately absorbed by existing institutions and academy trusts.

Department for Education (DfE) data obtained through a freedom of information request reveals that £325 million in capital funding supported 67 centrally delivered free schools that later disappeared, confirming prior warnings from the National Audit Office that up to 50 percent of new free school places created between 2015 and 2021 risked remaining surplus in local communities.

A government source described these figures as representing “the worst excesses of Tory free schools dogma,” stating that the Conservatives had prioritised unnecessary new schools over the urgent need to rebuild crumbling school buildings and expand provision for special educational needs. The source added that the Labour government is now committed to reforms that ensure previously neglected children receive an inclusive education, broadening opportunities and improving outcomes.

One stark example of wasted investment is the Waterside Primary Academy in Nottingham. Constructed at £11.5 million to offer 210 places, the school was never opened due to insufficient local demand. Instead, the building is being repurposed as a satellite facility for Rosehill Special School, expanding access for children with special educational needs and disabilities (SEND).

Regional data reveals further disparities. In London, £55 million was spent on eight free schools that either closed or were rebrokered—transferred to alternative academy trusts—while the West Midlands lost £16 million across two failed projects. Meanwhile, the region still listed 57 existing schools under the rebuilding programme, underscoring ongoing imbalances between new school creation and necessary refurbishment.

Despite these failures, proponents of the programme emphasise its successes. Meg Powell-Chandler, director of the New Schools Network, argued that free schools have injected new energy into England’s education system, fostering innovation and improving outcomes. She highlighted that free schools now outperform other non-selective state schools across measures from phonics checks to A-level results, enhancing choice and opportunities for hundreds of thousands of pupils.

Powell-Chandler urged the government to proceed with the 44 mainstream projects still approved under the programme, alongside special and alternative provision schools intended to deliver high-quality specialist places for disadvantaged children. However, planning for these schools was paused in October of last year by Shadow Education Secretary Bridget Phillipson while the government conducted a value-for-money evaluation. A decision on their future is expected imminently, leaving the sector in a state of uncertainty.

The debate over free schools reflects broader tensions in England’s education strategy, balancing innovation against practical necessity. While some argue that introducing choice and competition can drive standards, critics maintain that neglecting existing infrastructure and misjudging demand risks wasting taxpayer funds and exacerbating inequality. The £325 million spent on failed projects serves as a cautionary tale, emphasising the importance of careful planning and local consultation when designing education policies that profoundly affect children’s futures.

As Labour implements reforms targeting previously underserved communities, attention is increasingly turning toward sustainable investments that address foundational inequalities. Ensuring adequate special school provision, refurbishing decaying facilities, and making targeted investments where demand is demonstrably high are emerging as key priorities, signalling a strategic shift away from ideologically driven initiatives.

Ultimately, the lessons from the free schools programme underline the need for evidence-based education planning. Failure to align investment with actual demand can result in both wasted resources and missed opportunities to improve children’s life chances. The challenge for policymakers is now to reconcile innovation with practicality, ensuring that every pound spent contributes directly to high-quality, accessible education for all pupils.