In 2018–19, the Department introduced a new national funding formula with the aim of allocating funding for schools more transparently, consistently, and fairly.6 We reported in October 2021 that the national funding formula had led to a re-balancing of funding away from more deprived schools towards less deprived schools. Between 2017–18 and 2020–21, average per-pupil funding fell in real terms by 1.2% for the most deprived fifth of schools, but increased by 2.9% for the least deprived fifth.7 We challenged the Department again about the impact of the national funding formula and minimum funding levels on 1 C&AG’s Report, Financial sustainability of schools in England, Session 2021–22, HC 802, 25 November 2021 2 C&AG’s Report, paras 1.2–1.3 3 C&AG’s Report, paras 3, 12 4 NAO report on School funding in England, Figure 3. 5 C&AG’s Report, para 1.6 6 C&AG’s Report, School funding in England, Session 2021–22, HC 300, 2 July 2021, para 2.6 7 HC Committee of Public Accounts, School funding, Twenty-First Report of Session 2021–22, October 2021 8 Financial sustainability of schools in England deprived schools and children.8 The Department told us that the critical thing was that funding followed deprivation and need, particularly at pupil level. It explained that the shift in the balance of funding between schools reflected changes in relative need over time, but the most deprived areas still received more funding than the least deprived.9 The Department also said that it saw areas with similar levels of deprivation but with very different outcomes for their children, based on similar levels of resource. It explained that it wanted to work with schools on how they used their funding to help them get the best possible outcomes.10