10th March 2016

The Government has launched a consultation to start the process of introducing a national funding formula from 2017 to 2018.

The consultation proposes a national funding formula for schools and that funding will go direct to schools.

The Department for education said a series of factors would be considered:

  • basic per pupil funding - ensuring a core allocation for the costs of teaching all pupils
  • funding for additional needs - including deprivation, low prior attainment and English as an additional language
  • school costs - including fixed costs and those related to schools serving rural communities
  • area costs - ensuring more funding goes to areas that face the highest costs

Officials said there will also be a parallel consultation on a national funding formula for early years funding later this year. Once these key principles have been agreed, a further consultation seeking views on the weighting of these factors will follow.

This second stage consultation will set out full illustrations of the impacts of the funding formulae across schools and local authorities.

The Government plans to phase the changes in over time which it says will make them more manageable for schools and local authorities. This is due to include retaining the local authority role in school funding until 2019 to 2020 - although the national funding formula will begin in 2017 to 2018.

The Department said local authorities will continue to play a vital role in the distribution of high needs funding as they are best placed to make important local decisions about children with special educational needs and disabilities.

Read more on the BBC website.


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