Source · Select Committees · Education Committee
Recommendation 75
75
Not Addressed
Undertake comprehensive review of National Funding Formula to ensure fair, needs-based allocation.
Recommendation
A comprehensive review of the National Funding Formula is urgently needed to ensure funding is allocated fairly and reflects the real level of need across the country. The current formula fails to address historic underfunding, ignores rising inflation, does not account for regional differences in cost and need and ignores hidden pockets of deprivation. These gaps are driving deep and persistent inequalities in SEND provision. Any credible funding system must correct these failures and provide a stable, needs-based foundation for support. (Recommendation, Paragraph 260)
Government Response Summary
The government highlighted an increase of £4.2 billion in schools and high needs funding, committed to supporting local authorities with SEND deficits, and allocated £740 million for high needs capital, but did not commit to a comprehensive review of the National Funding Formula.
Government Response
Not Addressed
HM Government
Not Addressed
The overall schools and high needs funding included in the Department’s spending review settlement – an increase of £4.2 billion by 2028–29 compared to 2025–26 – continues the support available for children and young people with SEND. It will help in transforming mainstream education so that more of them are included, and in improving their outcomes whether in mainstream or specialist provision. We recognise that local authorities will need support during the transition to a reformed SEND system. We will work with local authorities to manage their SEND system, including deficits, alongside an extension to the Statutory Override until the end of 2027–28. The government will set out further details on our plans to support local authorities with historic and accruing deficits through the upcoming Local Government Finance Settlement. We also recognise the important role of capital funding in improving access to provision and in improving the inclusivity of mainstream schools. The £740 million high needs capital for 2025–26 is a core part of our investment into the SEND system. This is an unringfenced formulaic allocation that enables LAs to build provision in line with local priorities. We will set out more detail for our approach across the spending review period in due course.