School funding
Closed
What the inquiry looked at
“A recent report by the National Audit Office (NAO) found that a new national schools funding formula has led to to a shift in funding from more deprived schools to better off schools. Government funding per pupil has remained virtually unchanged since 2014. The Department for Education (DfE) implemented a new national funding formula in 2018-19, which set new minimum per-pupil funding arrangements. Under the national funding formula, more deprived local areas receive more per-pupil funding than less deprived areas as funding is linked to need, but the difference has decreased. The main reasons for the relative re-distribution of funding between local authorities were the introduction of minimum per-pupil funding levels; and changes in relative need, such as the proportion of pupils eligible for free school meals. Between 2017-18 and 2020-21, average per-pupil funding in the most deprived fifth of schools fell in real terms by 1.2%, while per-pupil funding in the least deprived fifth increased by 2.9%. In total, 58.3% of the most deprived fifth of schools saw a real-terms decrease in per-pupil funding. The Committee will question senior officials at the Department for Education and the Education and Skills Funding Agency on the impact of the national funding formula. If you have evidence on this, please submit it here by 6pm on Tuesday 13 July 2021.”
The committee's words, from the inquiry page on parliament.uk ↗.
What it found
In making changes to the school funding system, the Department for Education (the Department) has failed to take enough account of the impact of its decisions on individual schools and their pupils. The adverse impacts have fallen disproportionately on deprived local areas and schools. The introduction of the national funding formula in 2018–19 has resulted in a relative re-distribution of funding from more deprived schools to less deprived schools; in the three years to 2020–21, average per-pupil funding fell in real terms by 1.2% for the most deprived fifth of schools, but increased by 2.9% for the least deprived fifth. And the Department’s decision in 2021 to change how it calculates pupil premium funding means that schools have lost out on £90 million of funding to support disadvantaged children.
There is a lack of urgency in the Department’s approach to making improvements to the school system. Delivery of a number of its initiatives has slipped, and the Department is unwilling or unable to commit to revised timetables. In particular, the further delays in publishing the SEND review, which was announced in September 2019, are unacceptable. While the Department drags its feet, more and more children with special educational needs and disabilities are progressing through the school system without the support they need.
The Department has committed £3.1 billion to help children and young people catch up on learning lost due to the disruption caused by the COVID-19 pandemic. However, funding drops significantly from 2022–23 and the total falls well short of the £15 billion that the Government’s own Education Recovery Commissioner recommended. We have previously highlighted our concerns about the tutor programme but whatever aspect of catch-up schools need certainty so they can plan ahead. The Department says it is working through the feasibility of the more costly elements of the Commissioner’s proposals, such as extending the school day, and that further funding will be considered as part of the upcoming Spending Review. Given the importance of this issue and the scale of the challenge, we intend to return to the subject of education recovery at a later date.
What the government said
The government responded on 14 December 2021. The deadline was 22 December 2021.
Read the government's response ↗ Read the report ↗ Report an error
How the inquiry ran
Each dot is a dated item listed on this page, from the inquiry's opening on 5 July 2021 to 22 December 2021. The dashed mark is the deadline Parliament records for the government's response.
- Oral evidence 15 Jul 2021
- Report 22 Oct 2021
- Government response 14 Dec 2021
- Correspondence 2 letters
What it recommended 11 recommendations · 27 conclusions
2Under the national funding formula, schools that are more deprived have fared worse than those...
3It is not possible to tell whether individual academy schools are receiving the government’s guaranteed...
4Schools are having to cross-subsidise their sixth forms with funding intended to support younger pupils.
5The Department does not seem to have a grip on the impact of falling rolls...
6The Department cannot say when it will implement its commitment to a starting salary of...
1On the basis of a report by the Comptroller and Auditor General, we took evidence...
7There has also been a relative re-distribution of funding from more deprived schools (those with...
8The written evidence that we received raised concerns about the impact of the national funding...
9The Department said that the national funding formula had fixed a system that had become...
10The Department told us that funding allocations were now catching up with changing levels of...
11The Department also highlighted the impact of the new minimum per-pupil funding levels on the...
12The Department provides pupil premium funding (£2.2 billion in 2020–21) to help schools improve the...
13In 2018–19, as part of the national funding formula, the Department introduced minimum per-pupil funding...
14Local authorities can apply local funding formulae in deciding funding for maintained schools and academy...
15We asked why multi-academy trusts had more freedom in how they distributed funding.
16We asked how the parent of a child in an academy school could establish whether...
17Overall, between 2014–15 and 2020–21, the balance of funding shifted from secondary schools to primary...
18The Department said that it had looked carefully at the balance between funding for primary...
19The Department told us that it was mindful of the challenges facing 16-to-19 education, including...
20The funding that schools receive is largely determined by how many pupils they have.
21We have heard concerns about the funding of schools, across London and elsewhere, whose rolls...
22The Department emphasised that all schools receive a single lump sum regardless of size to...
23We asked whether the Department was confident that the falling rolls fund had sufficient resources...
24In September 2019, the Department announced a review of the support system for children with...
25In March 2021, the Department told us that it planned to publish a Green Paper...
26In July 2021, the Department wrote to tell us that it had decided it should...
27The Department recognised that the review process was taking much longer than it had wanted,...
28The Department highlighted three key things that it was doing while it worked on the...
29We pressed the Department on the projected timeframe for the review to be completed, asking...
30The school funding system currently involves local discretion in that local authorities and academy trusts...
31The Department explained that it had begun a consultation process about moving to a hard...
32In September 2019, the Government set out its intention that salaries for new teachers would...
33In its written evidence, the National Association of Head Teachers emphasised the need to improve...
34In the three years from 2018–19, the Department gave grants towards teacher pay increases, and...
35The Department said that it remained committed to the £30,000 starting salary for teachers.
36The Department plans to provide funding of £3.1 billion between 2020–21 and 2024–25 to help...
37Sir Kevan resigned as the Education Recovery Commissioner in June 2021.
38The Department noted that a large part of the additional funding that Sir Kevan had...
Evidence
Oral evidence sessions 1
- 15 Jul 2021School funding4 witnesses, listed belowparliament.uk ↗
Who gave evidence 4 witnesses
- Julia KinniburghDirector General for Skills, Department for Education
- Susan Acland-HoodPermanent Secretary, The Department for Education
- Tony FootDirector of Strategic Finance, Department for Education
- Warwick SharpDirector, Academies and Maintained Schools, Education and Skills Funding Agency
Correspondence 2 letters
- 29 Nov 2021Correspondence from Susan Acland-Hood, Permanent Secretary, Department for Education, re 21st PAC Report of Session 2021 – School Funding, dated 19 November 2021
- 10 Sep 2021Correspondence from Susan Acland-Hood, Permanent Secretary, Department for Education, re School Funding in England, dated 12 August 2021