Source · Select Committees · Public Accounts Committee
Recommendation 4
4
Schools are having to cross-subsidise their sixth forms with funding intended to support younger pupils.
Conclusion
Schools are having to cross-subsidise their sixth forms with funding intended to support younger pupils. Between 2014–15 and 2020–21, the balance of funding shifted from secondary schools to primary schools. Secondary school funding per pupil dropped by 3.9% in real terms, while primary school funding increased by 4.2%. Part of the reason for this was that the Department reduced funding per sixth-form student, which fell by 11.4% in real terms. The Department concedes that it chose to prioritise funding for children aged 5 to 16. Local authorities have also protected funding for primary schools. The Department accepts that 16-to-19 education is facing challenges, and that some schools cross-subsidise in order to keep their sixth forms going. It has increased funding for students aged 16 to 19 in the past two years, in order to start redressing the balance. Recommendation: In making and communicating decisions about school funding, the Department should explicitly consider how different funding streams interact so that schools do not have to cross-subsidise, for example, in order to support sixth-form provision.
Government Response
Acknowledged
HM Government
Acknowledged
4.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2021 4.2 The department is committed to investing in education for pupils aged 16-19, including school sixth forms. Following the 2019 Spending Round, the department has invested a total of an extra £691 million (£400 million in 2020-21 and a further £291 million in 2021-22) in 16-19 provision overall. In addition, Spending Review 2021 has made available an additional extra £1.6 billion for 16-19 education by 2024-25. This will support all institutions, including school sixth forms. Nonetheless, it is also important to reflect that many 16-19 only institutions, including free schools and sixth form colleges, provide high quality education without the need for cross-subsidy. 4.3 Schools are responsible for their own planning and for considering curriculum, timetable and resources when deciding what courses to offer in their sixth form. The department has been very clear in published guidance for Academies and free schools that new school sixth forms need to be above a certain size to ensure year on year sustainability. For example, academies proposing to open a new sixth form are expected to provide, as a minimum, 200 student places. New free schools with sixth forms are also expected to provide at least 200 places - or 1,000 if they are institutions only for pupils aged 16-19. 4.4 Funding allocations for the financial year 2022-23 are expected to be announced shortly. In taking decisions over funding levels for schools with children aged 5-16 and for those with post-16 provision the department will continue to consider in future years how these funding streams interact to support the financial sustainability of schools with sixth forms.