Discover the three critical factors that will influence your child's education in 2025, from budget cuts to new legislation and rising costs. File photo.
In an existence characterised by overbooked schedules, school runs, and (reasonably) balanced lunchboxes, it can be easy to lose sight of the things happening in our broader macro-economic environment that have the potential to impact our children’s education – and ultimately, their futures.
“We’ve never had more access to information at our fingertips, yet the flip side is news fatigue given that we are constantly bombarded across multiple channels, all day long. So while we might read the news, we don’t always internalise the effect that local and even global events have on us and our families,” says Arno Jansen van Vuuren, managing director at Futurewise, an education insurance provider.
With its purpose rooted in ensuring equitable access to education, Futurewise rounds up three significant events that will affect the education landscape in 2025 – and what you need to know, as a parent.
“The intention is not to be ‘doom-and-gloom’, but rather to understand the real-life effects of what is happening around us because forewarned is forearmed. With greater awareness, we are empowered to understand what it all means for us – and what is within our control,” explains Jansen van Vuuren.
Big budget cuts
The Department of Basic Education recently warned that consolidated budget pressures to the tune of between R78 – 118 billion across the provinces were setting the scene for brutal budget cuts. These budget pressures are not just numbers on a spreadsheet, as stated by Minister Siviwe Gwarube at a media briefing, “they translate into fewer teachers, reduced textbooks, and fewer admin support staff, which means teachers spend more time on admin work, thereby reducing learning and teaching time.”
These cuts affect the recruitment and retention of teachers, which could lead to classrooms becoming increasingly under-resourced and overcrowded. At the same time, certain regional departments have said they will cut funding to other critical programmes, like school transportation, to maintain teaching posts.
“However, there is hope on the horizon as the Department of Education realises the catastrophe this presents – especially for those schools in rural or poverty-stricken areas, which are most vulnerable – and is lobbying hard for increased investment and other measures to help provinces address their financial pressures.”
The Bela Bill
The aim of the Basic Education Laws Amendment (Bela) Bill, which was signed into law in September, is to strengthen the governance of SA’s education sector. The Bill contains key changes to regulations that govern education, with one significant update being that Grade R is now considered part of compulsory education (this was formerly from Grade 1). These amendments also include the criminalisation of parents / legal guardians who don’t ensure their children are in school.
However, two clauses in the Bela Bill are causing uproar among certain parties within the Government of National Unity (GNU), the education sector, and other stakeholders. These clauses, which have been deferred for several months, would enable provincial education heads to have the final say on school admission and language policies (and not school governing bodies).
While the final decision on these two clauses has not yet been reached, we wait to see how things will unfold…
Education inflation on the rise
Data from Stats SA reveals that education expenses in 2024 were, on average, 6.3% more expensive than in 2023 – a trend many fear will continue into 2025. This education inflation rate surpasses normal inflation, with high schools seeing the most significant increase (7.3%), followed by crèches (6.0%) and primary schools and tertiary institutions (both up by 5.9%).
While parents remain at the mercy of the macro-environment, the good news is that there are steps they can take to safeguard their children’s education. “Savings and education insurance are important tools to protect your child’s right to quality education from internal and external financial pressures,” says Jansen van Vuuren.
Having a form of savings is important as this covers vital expenses beyond pure tuition, such as books, uniforms, extra-murals, school activities, etc. Most financial planners advise putting around away R2,000 a month to accommodate this.
Education insurance, on the other hand, offers the policyholder the assurance that should something happen to their ability to earn an income, their child’s schooling is provided for, says Jansen van Vuuren, through insurance ringfenced to cover education expenses only. Premiums tend to be more affordable and cover levels automatically adjust annually to keep pace with inflation.
“It is important to be aware of the factors and events that have the potential to affect our children’s learning – and also to know there are tools that exist which can help safeguard their futures.”
PERSONAL FINANCE