Overview
- The settlement was made an order by the Makhanda High Court on Wednesday, August 19, 2026, and declared the department's practice of keeping about a third of each school's allocation unlawful and unconstitutional.
- GroundUp and the Legal Resources Centre calculated that roughly R6-billion was held back from no-fee schools between 2020 and 2026 but the court order does not require repayment of past shortfalls.
- The Eastern Cape Education Department agreed to consult schools before any central purchase of Learner Teacher Support Materials and to follow a clearer process for future allocations.
- Lawyers and unions say the ruling should mean schools receive fuller funding in the 2027/28 budget year while principals report that withheld money forced teachers and parents to pay for basics and left some schools with disconnected water or limited supplies.
- The case raises wider questions about education equity in one of South Africa's poorest provinces and sets up monitoring steps, including departmental reporting on compliance through to September 2027, that will show whether the ruling produces lasting change.