Source · Select Committees · Public Accounts Committee
Recommendation 2
2
Accepted
Re-assess evidence base for funding decisions and set out future funding priorities, including pupil premium.
Conclusion
DfE continues to improve its evidence base for what works, but the rationale for certain funding decisions, in particular increasing core funding, does not always follow the evidence. The Department has assessed its evidence base for pupil premium effectively supporting the attainment of disadvantaged children as relatively strong compared to 3 other interventions. However, over the period 2018–19 to 2023–24 this funding has not risen in line with inflation, decreasing by 3% in real terms with a 9% real–terms reduction in per–pupil funding. By contrast, evidence is less strong on the impact of the disadvantage and deprivation related funding provided through the National Funding Formula (the core funding)– but the Department has increased it by 10% in real terms over the same period. The Department ‘s rationale for these decisions is not clear. The Department accepts it needs to develop its evidence base for interventions beyond pupil premium, to help support its decisions on where to target funding to best effect. recommendation Whilst continuing to build an understanding of what works, DfE should re–assess the evidence base for funding decisions and, as part of this, set out its funding priorities for 2025–26, including where pupil premium falls within this.
Government Response Summary
The government committed to reviewing the operation of additional-needs factors within the National Funding Formula, including their evidence base and interaction with pupil premium, to inform funding decisions for 2026-27 and beyond. It noted that 2025-26 funding rates have already been published.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. looking at the operation of the schools national funding formula (NFF), including the operation of “additional needs” funding in the NFF. The NFF targets funding to areas with larger proportions of pupils with additional needs, including deprivation. The deprivation factors in the NFF act as broader proxy measures for schools that are most likely to need extra resources to support their pupils to reach their full potential – including pupils with special educational needs and disability (SEND). The department is reviewing the operation of the additional-needs factors within the NFF, including the weightings that they have within the formula. This will look at the evidence base for these funding decisions, including the extent to which the factors used correlate with incidence of additional needs, including SEND. The interaction between pupil funding and NFF funding will be considered as part of this review. The NFF allocations and pupil premium funding rates for 2025-26 have already been published, and so the focus of the review will be on future funding years. This review will inform decisions on the NFF and pupil premium for 2026-27, and the following years of the spending review period.