Source · Select Committees · Public Accounts Committee
Recommendation 5
5
The Department does not seem to have a grip on the impact of falling rolls...
Conclusion
The Department does not seem to have a grip on the impact of falling rolls on schools. Most school funding follows the pupils—under the national funding formula, the Department allocates nearly three-quarters of schools block funding on the basis of pupil numbers. We know of schools whose rolls are falling due to changes in their local populations. These schools still have to cover their fixed costs, but are seeing their funding fall significantly. The Department highlights that there is a ‘falling rolls fund’ that local authorities can use to help schools in this position, and that the national funding formula provides a lump sum for each school regardless of size. However, the Department does not appear to have a strong understanding of the practical financial impact of falling rolls on individual schools. Recommendation: The Department should carry out an evidence-based assessment of whether there is enough support for schools whose rolls are falling, and write to us by the end of March 2022 with an update on the results of its assessment and what it is doing to address any concerns.
Government Response
Acknowledged
HM Government
Acknowledged
5.1 The government agrees with the Committee’s recommendation. Target implementation date: March 2022 5.2 The National Funding Formula (NFF) has a number of elements which support schools with falling rolls. In particular, schools are funded on a lagged basis (ie. the number of pupils they had on roll at the previous autumn census). This is particularly beneficial for schools that experience decreases to their number of pupils because it gives lead-in time for such schools to plan spending in response to having fewer pupils. 5.3 Responsibility for balancing the supply and demand of school places rests with the local authority. All local authorities should ensure they are managing the local school estate efficiently such that schools remain financially viable. This means that local authorities may need to focus onto reducing or re-purposing high levels of spare capacity, in order to avoid undermining the educational offer or financial viability of schools in their area. Local authorities should consider a spectrum of options for the reutilisation of space, including, for example, co- locating nursery or SEND provision, as well as options for reconfiguration, including via remodelling, amalgamations or mergers/closures where this is the best course of action. 5.4 Local authorities may set aside some of their Dedicated School Grant (DSG) schools block funding for falling rolls funds. These are intended to support good and outstanding schools with falling rolls where local planning data show that surplus places will be needed with the next three financial years. The decision on whether to have falling rolls funds, and the value of these funds, is subject to local discretion and agreement from the local schools forum. 5.5 The department will write to the Committee in March 2022 with an updated assessment of support for schools with decreasing pupil numbers.