Select Committee · Public Accounts Committee

School funding

Status: Closed Opened: 5 Jul 2021 Closed: 14 Dec 2021 11 recommendations 27 conclusions 1 report

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 … Show more

Clear

Reports

1 report
Title HC No. Published Items Response
Twenty-First Report - School Funding HC 183 22 Oct 2021 38 Responded

Recommendations & Conclusions

5 items
8 Conclusion Twenty-First Report - School Funding Acknowledged

The written evidence that we received raised concerns about the impact of the national funding...

The written evidence that we received raised concerns about the impact of the national funding formula. Professor Tanya Ovenden-Hope said that the formula had not delivered the expected significant increases in funding for small schools, including rural schools which have traditionally struggled to remain sustainable.8 The NASUWT (The Teachers’ Union) … Read more

Government response AI summary
The government acknowledges concerns about the national funding formula (NFF) and reiterates its belief that the NFF distributes funding fairly. It further states it has published a consultation on moving to a direct, single national formula, with a gradual transition proposed from 2023-24 and annual …
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HM Treasury
17 Conclusion Twenty-First Report - School Funding Acknowledged

Overall, between 2014–15 and 2020–21, the balance of funding shifted from secondary schools to primary...

Overall, between 2014–15 and 2020–21, the balance of funding shifted from secondary schools to primary schools. Secondary school funding per pupil fell by 3.9% in real terms, while primary school funding increased by 4.2%. The main cause of this shift was local authorities protecting funding for primary schools in their … Read more

Government response AI summary
The government agrees with the committee's observation, stating its commitment to investing in 16-19 education, including school sixth forms, with an additional £1.6 billion by 2024-25, and will continue to consider how funding streams interact to support financial sustainability.
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HM Treasury
18 Conclusion Twenty-First Report - School Funding Acknowledged

The Department said that it had looked carefully at the balance between funding for primary...

The Department said that it had looked carefully at the balance between funding for primary and secondary schools when it had designed the national funding formula.26 We asked whether school sixth forms were losing out in an attempt to prop up the rest of the system. The Department disagreed with … Read more

Government response AI summary
The government acknowledges concerns about cross-subsidy and commits to continued investment in 16-19 education, noting additional funding made available. It states that the department will continue to consider how different funding streams interact to support the financial sustainability of schools with sixth forms.
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HM Treasury
20 Conclusion Twenty-First Report - School Funding Acknowledged

The funding that schools receive is largely determined by how many pupils they have.

The funding that schools receive is largely determined by how many pupils they have. Under the national funding formula, the Department allocates 73.5% of schools block funding based on pupil numbers. A further 17.9% of funding relates to the number of pupils with characteristics that indicate additional need, including deprivation … Read more

Government response AI summary
The government acknowledges the committee's observation on funding allocation and states it has published a consultation on moving to a direct, single national funding formula. It proposes a gradual transition from 2023-24 and will publish an annual analysis of its impact, with the first due …
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HM Treasury
31 Conclusion Twenty-First Report - School Funding Acknowledged

The Department explained that it had begun a consultation process about moving to a hard...

The Department explained that it had begun a consultation process about moving to a hard funding formula on 8 July 2021. Ultimately, its goal was to allocate funding consistently across the system as whole, so that schools with the same characteristics and pupil needs would be funded at the same … Read more

Government response AI summary
The Department noted it has recently published a consultation document, 'Completing our Reforms to the NFF', which proposes moving to a direct funding allocation for schools based on a national formula.
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HM Treasury

Oral evidence sessions

1 session
Date Witnesses
15 Jul 2021 Julia Kinniburgh · Department for Education, Susan Acland-Hood · The Department for Education, Tony Foot · Department for Education, Warwick Sharp · Education and Skills Funding Agency View ↗

Who gave evidence

4 witnesses
WitnessOrganisationSessions
Julia Kinniburgh · Director General for Skills Department for Education 1
Susan Acland-Hood · Permanent Secretary The Department for Education 1
Tony Foot · Director of Strategic Finance Department for Education 1
Warwick Sharp · Director, Academies and Maintained Schools Education and Skills Funding Agency 1

Correspondence

2 letters
DateDirectionTitle
29 Nov 2021 Correspondence from Susan Acland-Hood, Permanent Secretary, Department for Educ…
10 Sep 2021 Correspondence from Susan Acland-Hood, Permanent Secretary, Department for Educ…