School funding in England

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.

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.

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.

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.