The majority of schools have warned they will be forced to make redundancies next year due to the funding crisis.
A new survey by the National Association of Head Teachers (NAHT), found two-thirds of schools will have to make teaching assistants redundant or reduce their hours due to government underfunding.
Half of school leaders also said they are looking at reducing the number of teachers or teaching hours next year.
The survey also showed that more than half of schools (54%) will go into deficit this year unless they make further cuts. Only 5% of schools will be able to pay their costs next academic year without going into deficit.
Paul Whiteman, NAHT general secretary, said: 'Schools are finding that they have no option but to make redundancies. A reduction in teaching assistants and teachers will be catastrophic, leading to larger class sizes and less support for children with the greatest needs. This cannot be allowed to happen.
'Schools will no longer be able to afford those crucial services that are there to support pupils – things that children rely on not just for education but for their health and wellbeing. Things like in-school mental health services, counselling, and speech and language therapy. And it’s that extra help for families – especially those hit hardest by the cost-of-living crisis – that schools can no longer afford – things like food for breakfast and help with clothing and laundry.'
The survey also revealed that nearly half of schools (47%) said they would be forced to cut back on services such as counselling, therapy and mental health support, with 44% having to reduce spending on additional targeted interventions for pupils requiring additional support.
Council leaders called the results 'very worrying' and called on the Government to use the Autumn Statement to come up with a long-term plan to save local services.
Cllr Louise Gittins, chair of the Local Government Association’s Children and Young People Board, said: 'Many schools have been raising concerns about their financial stability with councils as the rising costs of fuel, energy and food for school meals have an impact, alongside the need to fund agreed pay rises, including for teachers. Councils continue to monitor this and work closely with schools.
'At the same time, councils and local services are facing massive financial challenges, following the sharp rise in inflation. Alongside increases to the National Living Wage and higher energy costs, this has added at least £2.4bn in extra costs onto the budgets councils set in March this year.'
