Source · National Audit Office

School funding in England

Published: 2 Jul 2021 Recommendations: 4 Type: Value for Money Department: Department for Education

This report examines the Department for Education’s funding provision and distribution of funding for mainstream schools in England.

Dept: Department for Education Topics: Commercial and financial managementEducation, training and skillsFinancial sustainabilitySchools nao.org.uk →

Recommendations

4 items

4 accepted 4 implemented

Rec	Recommendation	Addressee	Acceptance	Implementation
1	We recommend that the Department should take the following actions: a) Evaluate the impact of the national funding formula and minimum funding levels over time and use that information to inform whether further action is needed to meet its objectives. In particular, the Department should review whether the shift in the balance of funding from more deprived areas to less deprived areas, and from more deprived schools to less deprived schools, means it is adequately meeting its objective of matching resources to need. Ref Page 11, paragraph 20, point a · Implemented 07/2025	Department for Education	Accepted	Implemented
2	b) Assess systematically the impact of the COVID-19 pandemic on schools’ finances and take account of this information in its decision-making. This work should consider the potential impact of the pandemic on schools’ costs and income over time, and the differential impact on schools in different circumstances. Ref Page 11, paragraph 20, point b · Implemented 07/2023	Department for Education	Accepted	Implemented
3	c) Make clear, in communicating information about funding to the school system, Parliament and the public, that local flexibilities mean that it cannot guarantee the amount of schools block funding that each school receives. In particular, the Department should be explicit that it does not have assurance that academy schools are receiving the minimum per-pupil funding levels that it has set. Ref Page 11, paragraph 20, point c · Implemented 11/2024	Department for Education	Accepted	Implemented
4	d) Take action to help mainstream schools deal with high-needs cost pressures. The Department needs to complete its review of support for pupils with special educational needs and disabilities and set out how it will improve this aspect of the funding arrangements for mainstream schools. Ref Page 11, paragraph 20, point d · Implemented 02/2026	Department for Education	Accepted	Implemented

Public Accounts Committee follow-up

1 report

The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.

22 Oct 2021 Public Accounts C… Twenty-First Report - School Funding — 15 recommendations · parliament.uk