Dedicated Schools Grant

Tuesday 6th May 2025 Westminster Hall

[Dawn Butler in the Chair]

16:30

[Cameron Thomas (Tewkesbury) (LD)]

I beg to move,

That this House has considered the Dedicated Schools Grant.

It is an honour to serve under your chairship, Ms Butler. I thank the f40 group for its assistance with this issue, as well as all those in attendance, including the Minister, whose presence is greatly appreciated. I bring this debate forward on behalf of the headteachers, teaching staff, support staff and young people across Gloucestershire and the other local authorities that are among the lowest-funded councils by the Department for Education across England.

In its 2024 manifesto, Labour pledged to

“transform our education system so that young people get the opportunities they deserve.”

There is a clear alignment between that and the Liberal Democrats’ commitment to increase per pupil funding above the rate of inflation every year. Our goal is to support all pupils and expand educational provision, not to shift resources away from more disadvantaged counties like Gloucestershire. Schools in my constituency are faced with increased pressure right now, owing to the inequitable dedicated schools grant, combined with the rising cost of special educational needs provision.

Consecutive Governments have failed our children. With short-term mindsets, they have not adequately resourced education through which our children could otherwise go on to boost every workplace across the country. Those Governments left our children to emerge into a country where every public service is crumbling, but in which they need a university degree to become a police officer. Brexit took away their access to Erasmus and left a bitterly divided society, which is still struggling to readjust following the covid-19 pandemic.

When Sir Kevan Collins recommended a £13.5 billion covid catch-up fund for our children, Boris Johnson’s Government fielded only one tenth of that figure, after thoughtlessly spending billions on botched contracts for personal protective equipment. Our children continue to suffer the consequences of that decision through a mental health crisis; an explosion in demand for special educational needs and disabilities provision; and almost a million young adults not in work, education or training. I entered politics because I believe in fairness. Whatever else we do in this place, I believe there are two routes through which we can improve the future of our country—political, including electoral reform; and education, education, education.

Within every child lies the potential for greatness—the potential to solve tomorrow what seems impossible today. Our children represent our hope for the future. They are yet unburdened by the decades of dogma, societal pressure and institutional inequity that weigh upon us, and dilute our own potential. In every aspect of our lives, we must strive to prepare the ground ahead of them, and leave them a better country and a better world than was passed to us.

Our teachers recognise that more clearly than any of us. They dedicate their careers to the fulfilment of our children’s potential, because there is no more rewarding pursuit than to help others to develop. No salary compares to being thanked in the street by those you have helped, and watching with pride as they go above and beyond what they imagined they could. Labour’s 2024 manifesto described teaching as a “hard-earned and hard-learned skill” and pledged to work to “raise its status.” I commend the observation that we are continuing to fail our teachers, and the commitment.

[Monica Harding (Esher and Walton) (LD)]

Does my hon. Friend agree that teachers and teaching assistants in schools were the first line of defence against cuts to public services from the last Conservative Government, and that, when the Department for Education is asking schools to make efficiencies alongside the extra funding they have received, that means that some TAs will lose their jobs? Last week, in my constituency of Esher and Walton, I walked into a school on a visit and the headteacher had just had to let two TAs go because his school is facing a deficit of £200,000.

[Cameron Thomas]

I wholeheartedly agree, and will come to that point shortly. I hope my hon. Friend will pass on my empathy to her headteacher.

Our teachers are no longer simply expected to educate our children according to the curriculum. Governments and society continue to expect more and more of our already overburdened teachers. Increasingly, four-year-olds are being introduced to school non-verbal, unable to use cutlery, and sometimes wearing nappies—but those are just the headlines. Discipline, time management, self and social awareness, self and mutual respect, moral courage, honesty, work ethic, public service and charity are soft skills and attributes that should be introduced in the home and honed within society as well as at school. This Government, with honest intentions towards our children’s healthcare, now have teachers cleaning their pupils’ teeth—just one additional straw upon the camel’s back. It is no wonder that teaching assistant posts are vacated or lie empty when people can earn more working in the local supermarket.

I understand that fixing the education system will be complex and expensive, and that action must also take place beyond the scope of the Department for Education, but something that can be addressed now is a more equitable allocation of funding. This would go a long way to remedying the situation for many schools in Gloucestershire and elsewhere. The dedicated schools grant is the mechanism through which the Department funds local authorities, which in turn allocate their resources to the schools within their jurisdiction.

[Steve Darling (Torbay) (LD)]

One school in my constituency has a £100,000 bill due to the national insurance hike, which is resulting in redundancies. Does my hon. Friend agree that the national insurance hike is exacerbating the inequity that many schools face in our local communities?

[Cameron Thomas]

I entirely agree. I have long spoken out against the short-sightedness of the national insurance hike, and I will come back to the short-termism that I think it important this Government escape.

The dedicated schools grant is allocated according to the national funding formula, which is outdated and puts schools such as mine in Gloucestershire under increased pressure. Mainstream schools in the lowest-funded local authority receive £5,000 less per pupil per year than they do in the highest-funded authority.

[Freddie van Mierlo (Henley and Thame) (LD)]

In Oxfordshire, we receive an area cost adjustment of just 2%—that is to take into account the difference in the cost of living in different parts of the country. In London boroughs, that adjustment reaches 18%. It simply does not match the cost of living in Oxfordshire, where house prices are comparable to those in London. Does my hon. Friend share my concern that this lack of funding is impacting the education of our children?

[Cameron Thomas]

As somebody who was—let us be generous—barely educated in Oxfordshire himself, I am very much aware of the issue.

My mainstream schools in Gloucestershire fall into the bottom 20% of DSG funding, earning £1,000 less per pupil than schools in the top 20. This means that Cleeve school, for example, with its 1,851 pupils, faces an approximate annual deficit of over £1.8 million compared with a similarly sized school in Middlesbrough.

[Edward Morello (West Dorset) (LD)]

I agree with all the points that my hon. Friend has made so far. This morning, I spoke to the headmaster of the Thomas Hardye school in Dorchester in my constituency. His previous job was at a London borough school in Croydon, where on average he received £10,000 per pupil; in West Dorset, that figure is £5,000. Does my hon. Friend agree that the Government’s funding formula for schools does not take into account the added costs of rurality and providing services in places like West Dorset and, no doubt, his own constituency?

[Cameron Thomas]

With such gravity, my hon. Friend says it better than I could ever hope to. The inequity is there for all to see, and it is interesting that one of his teachers has experienced both ends of that scale.

My four-year-old daughter and her friends will begin their primary school education in Gloucestershire in September. I want them to have, as the Labour manifesto put it, the opportunities they deserve. To me, that means the same opportunities as every other child—but by the time they finish their GCSEs under this inequitable system, the dedicated schools grant will have invested between £10,000 and £50,000 less in our children than in those elsewhere in the country.

The Government might point to an upward trend in the dedicated schools grant in Gloucestershire since 2021, but on the current trajectory, it will take 15 years to achieve equity. By then, my daughter and her friends will have long since left school. Unless the Government act now, their potential will have been diluted by the dedicated schools grant as is. By the time we achieve equity, according to trends based on the Government’s own statistics, the vast majority of those teaching today will have retired. My headteachers have told me that, for most schools, approximately 85% of their funding is ringfenced for staffing costs, but that rises to over 90% in some particularly desperate cases.

The level of teaching experience in our schools is diminishing because our headteachers are having to make their most experienced and highly paid teachers redundant, so that they can recruit less experienced teachers on lower wages just to balance the books.

[John Milne (Horsham) (LD)]

In West Sussex, the deficit on our DSG grant is £130 million, and that will potentially double by next year. Despite that, SEND provision, which is the main driver of that deficit, is deficient across the district. So many schools approach me on this subject. Does my hon. Friend agree that we need to not only find a way to wipe out the deficit but remove the fundamental cause, which is the ballooning cost of SEND provision?

[Cameron Thomas]

My hon. Friend makes eloquent points. Clearly, the SEND crisis is exacerbating the situation to a significant degree. What we look for from the Government is a long-term strategic plan to deal with this, rather than just pushing it down the line.

Since 2014, mainstream schools have been required to contribute the initial £6,000 of additional costs for SEND pupils from their own core budget. Owing to the inequity in the DSG, it is easy to see why that has a greater impact on those schools in lower-funded authorities. Resources have become so stretched many teaching assistants are available only to support pupils with the greatest SEND requirements. Underfunded primary and senior schools are taking drastic actions to balance the books. One primary school head I spoke with spends his holidays in school, completing the tasks of a caretaker he can no longer afford to employ. Across Gloucestershire there is nothing left to cut. Headteachers are overwhelmed and cannot afford to meet the cost of any pay rise that may arise from the Government’s negotiations with teaching unions. The impact of an unfunded pay rise, I have been told, would be ruinous.

I recognise that this Government inherited from the Conservative party an utterly broken country. That was a hospital pass but, almost a year down the line, my teachers remain on the frontline of a genuine crisis, to which they have been given no real answers. They do not have time for more politics as usual. They do not have another 15 years for this system to reach equity, nor do they need more short-termism. They need their Government to step up now with long-term solutions that do not simply pass the challenges down the line.

To support teachers and enable them to plan for the future, rather than simply stave off financial collapse, I ask the Government to review the national funding formula, and target funding to achieve near-term equity. Thank you, Ms Butler, for chairing this debate; I look forward to the contributions of others and the Minister’s response.

16:43

[Richard Foord (Honiton and Sidmouth) (LD)]

It is an honour to serve with you in the Chair, Ms Butler. Let me start with a simple fact: Devon is one of the worst-funded education authorities in the country. For 2024-25, Devon receives just £5,484 per pupil—about £200 less than the national average and about £1,500 less per pupil than in inner London. I have experienced the difference through the eyes of the teachers I have talked to in Devon who have taught in both inner London and rural Devon, and who described to me the difference the funding makes. For an average Devon primary school, it equates to losing the budget for one whole teacher.

Devon is an f40 authority—one of the 40 lowest-funded areas in England. The national funding formula was supposed to level the playing field, but it has left schools in areas like east and mid Devon struggling. Nowhere is the crisis more obvious than in special educational needs. Devon’s high needs block allocation for 2025-26 is £125 million, but the anticipated cost of supporting SEND children is £172 million. Up to now that funding gap has been filled by the so-called safety valve, but I understand that we might not have that safety-valve relief from 2026. If we compare Devon’s high needs allocation per pupil to that of a council such as Camden, we see a real disparity, as we do with Westminster, which receives £2,610 per pupil against Devon’s £1,245 per pupil. Devon is being asked to deliver special educational needs provision on half the budget.

Let me share the story of one affected family. Kathryn Radley lives in Uplyme in the area I represent, and her daughter Sophia is autistic. At one point Sophia was offered just six hours a week of online education, and her family had to borrow money to keep that minimal support going when the council did not fund it. The education, health and care plan that was issued for her was unworkable, did not name a school and was not supported by any deliverable provision. Sophia, who did not misbehave or disrupt her class, and who simply needed specialist support, was left isolated at home with anxiety, and with no place in the system.

Devon currently spends £55 million on SEND provision in the private sector, which is not properly audited or scrutinised. Meanwhile, state schools in the area I represent, such as in Honiton, Axminster and Sidmouth, are crying out for more resources to support special educational needs—more teaching assistants, specialist hubs and early intervention services—but they cannot get them because the per pupil funding is far less than it is elsewhere. We therefore see teachers who are overwhelmed, too few teaching assistants and staff who prioritise behavioural cases over inclusion, meaning that many children like the one I described simply cannot cope.

Devon needs urgent and fairer funding for its schools from the dedicated schools grant. We need to expand local SEND resource bases and give mainstream schools the tools they need to include every child. Indeed, the Department for Education should give Devon’s children the funding for education that they deserve.

16:48

[Joe Morris (Hexham) (Lab)]

It is a pleasure to serve under your chairship, Ms Butler. I congratulate the hon. Member for Tewkesbury (Cameron Thomas) on securing this important debate.

For far too long, the state of rural and semi-rural schools has been forgotten, particularly in my part of Northumberland, where Northumberland county council, which is still run by the Conservatives, treats my part of the county with what I can only describe as tender contempt. The previous Government thought so little of my constituency that eight and a half years ago they built a school that is already deemed structurally unsafe. Students have had to be transported to another part of the north-east to continue their education. That is the context in which I situate my remarks.

Generations of rural students have been left behind. I thank the hon. Member for Tewkesbury for his circumspectness in his comments about the awful circumstances that the Government inherited. It is not possible to start any discussion of any policy without recognising that we received a generational hospital pass, as I think he put it.

Having grown up in a rural area, I know that there are foundational characteristics. I confess to not knowing too much about Gloucestershire, having not had the chance to go there much beyond, I think, one family funeral when I was about 10, but I am sure it is lovely. From what I can tell, Northumberland has a lot that is similar, including large distances to travel and restricted access to opportunities and services. I went back to my old high school recently to discuss some of the access to work schemes that staff there try to provide and some of the opportunities for younger people to get employment skills. The teachers are working every hour they get, but they are hamstrung by the lack of local bus routes and appropriate public transport, and the lack of employers with the capacity to take on apprentices or students who are in need of work experience.

For far too long during the 100 years my constituency had Conservative representation down here, the challenges were not given voice or addressed. That was the challenge, dare I say it, of being considered a safe Tory seat: people could vote for their MP but not get a voice as part of that. We need to do more to engender stronger ties between communities and schools, to ensure that those growing up in our communities do not have to search too far outside them to find the opportunities and jobs that they want to progress in life. Unfortunately, the reality for many students is that they do have to.

I will direct the remainder of my remarks to two particular schools. First, Haydon Bridge high school is an incredible school in a beautiful location—and I get to visit a lot of schools. Haydon Bridge is a wonderful town on the Tyne Valley railway line—although the railway could do with running on time a bit more—and it has a fantastic school with genuinely fantastic teachers. Unfortunately, when I visited I had to discuss the funding issues with the headteacher.

I would dearly like to see the new administration at Northumberland county hall put their hands in their pocket to do something about the state of the school, which has been underfunded for a long time. There has not been the political will, nous or leadership among the Conservative group in Morpeth to stand up for students in the west of Northumberland. The teachers at Haydon Bridge could not work any harder, nor put on more opportunities. They are always looking at how to make the school more attractive and at how they can drive employment and employability, but for far too long the voice of rural schools has been shut out of the national debate.

Prudhoe community high school was opened eight and a half years ago. It was built under a Conservative Secretary of State and Education Department, but it was closed due to cracks in the infrastructure. I have been working on that with the staff and the community in Prudhoe. It would be a struggle to find a more inspiring group of people, particularly the headteacher and the teaching staff there. They had to deal with cracks appearing in the structure just months before GCSEs and A-levels—an incredibly challenging situation—and did so to the best of their ability. Everyone accepts that the ultimate, best outcome would have been for the students to be able to go back into the school to receive their education on site, but that would not have been safe. People had to work incredibly hard to find an appropriate site that did not involve travel and enabled the students to continue their education safely.

I urge the Minister not just to look at the matters raised in this debate but to consider—as I know she has many times, because I have chased her down corridors about this—the circumstances of those at the community high school. I also put that point to the exam boards, because the students had a black swan event with their school being deemed unsafe so close to exam times. Some of the boards have said that it falls under the definition of a school with reinforced autoclaved aerated concrete, but I do not believe that—I want to put on the record. For far too long schools in my constituency in the west of Northumberland have been forgotten about and done down. It is beyond time that those responsible, particularly at county hall, stand up and take note.

[Dawn Butler (in the Chair)]

I remind Members that if they want to speak in the debate, they should please stand. We have calculated that Members will have about five minutes per speech.

16:53

[Claire Young (Thornbury and Yate) (LD)]

It is an honour to serve under your chairship, Ms Butler. I thank my hon. Friend the Member for Tewkesbury (Cameron Thomas) for securing the debate.

Investing in education is investing in our future, so we need to get it right. The national funding formula creates huge discrepancies in how children are supported in different authorities. My local authority, South Gloucestershire, has long been at or near the bottom of the funding league table, and that lack of investment is having a real impact on children. Thornbury and Yate is largely rural, but most of the rest of South Gloucestershire is urban. Generally, with all sorts of Government funding, when taken as a whole, it has suffered through not being rural enough for rural support but not having the concentrations of deprivation seen in some urban areas. Even within my constituency there is huge variation in the demographics of school intakes.

I recently wrote to the Minister about the case of one primary school in my constituency that I visited. It provides a good example of the pressures caused by the unfairness in the existing funding system. Staff at the school told me that it has developed a reputation for being particularly supportive of children with SEND, and thus has an unusually high proportion of children who require extra support. On top of that, it is being asked to support increasingly high levels of medical needs, which its already overstretched staff are not trained to meet. It also has a high number of children with English as a second language, and a third of its pupils qualify for pupil premium funding.

In many ways, the school’s intake is comparable to a school the staff visited in London, yet that school gets much higher per pupil funding simply because of the local authority it is in. That shows in the services that the London school is able to provide, from having specialist art and music teachers to having two teachers per class. Our children in Thornbury and Yate deserve more than what the funding currently provides.

The disparity is undermining the work that our local schools do and leaving them worse off. We need a fairer national funding formula that supports disadvantaged and rural schools, not just those in more affluent and urban areas, and recognises the wide variation within local authority boundaries.

[Edward Morello]

I agree 100% with my hon. Friend’s point. I have no doubt that in her constituency, as in mine, there is a similar problem: when the Government talk about a fully funded pay increase, it is based on a school average. In many rural places, we do not have the average because we have smaller class sizes, or we have single, large schools that cover a large geographical area and a large number of pupils, which are heavily disadvantaged as a result.

[Claire Young]

I absolutely agree. It is a particular problem for small rural schools, which often have small class sizes because the schools are small overall.

We need action on funding for special educational needs and disabilities, as too many children are being left without the support they need. For years, schools in South Gloucestershire have had to ask the Government to allow them to take money from the schools block to supplement the high needs block. That reduces the funding available for early intervention which, as we know, is so important for better outcomes. It also makes the funding situation worse as more children need higher-cost interventions at a later stage. The high needs block must be protected and expanded to reflect the growing demand and rising complexity in children’s needs.

South Gloucestershire is one of the authorities with a safety valve agreement, which is intended to help councils to manage large deficits in their high needs budgets. It was signed pre-covid, with targets that are unachievable thanks to the impact of the pandemic. Next year, when the agreement ends, the council faces a cliff edge in funding. It, and other councils in that position, face impossible choices between balancing budgets and supporting vulnerable children.

Furthermore, in the case of South Gloucestershire, the previous Conservative Government failed to provide the requested £30 million of funding to provide an additional 200 special school placements locally. As well as being better for the children, that would have reduced costs. Earlier this year, I had a meeting with the Minister and South Gloucestershire’s council leadership in the hope that this Government would take a more sensible approach, but the focus seems to be on providing spaces in mainstream settings. We support that as a goal, with extra funding for early intervention to make it possible, while recognising that there are children who need support now and did not get that early intervention. We also need funding for them.

I ask the Minister to think again about what works now, because otherwise another generation of our children will miss out. Without a solution to the ending of the safety valve agreement, the whole system could collapse, leading to longer waits, reduced provision and more children out of school. We need sustainable, long-term funding for children with high needs, and an end to short-term financial firefighting.

16:58

[Sarah Dyke (Glastonbury and Somerton) (LD)]

It is a pleasure to speak in this important debate and to serve with you in the Chair, Ms Butler. I congratulate my hon. Friend the Member for Tewkesbury (Cameron Thomas) on securing the debate and on his powerful speech. I alert Members to my position as one of the vice chairs of the f40 group, which represents 43 local authorities with historically low funding for education and campaigns for fairer funding for schools and SEND provision.

Somerset is one of those 43 councils. Its 2025-26 dedicated schools grant allocation is just £8,500 per student, while some councils get nearly £5,000 more than that per pupil. The launch in 2018 of the national funding formula for mainstream schools introduced a minimum per pupil funding level, which was designed to level up funding. However, that has continued to lock in historical funding elements, preventing some local authority areas from receiving more funding. The Liberal Democrats understand the need for regional variation to ensure that schools can operate successfully, but that should not come at the expense of schools elsewhere, which often struggle to make ends meet.

As other Members have stated, the DSG is made up of four blocks, one of which is the high needs block, which supports SEND provision for children in both mainstream and specialist schools. Somerset’s 2025-2026 allocation of high-needs block funding is £1,250 per student—more than £2,000 less than the highest-funded local authority. It has been stressed many times that the SEND system is broken; the variance and unequal DSG funding is a big reason for that. My inbox, like that of many other Members, is full of correspondence from parents who all desperately want the best education for their children, but are concerned and deeply upset that their children’s needs are not being met by their schools.

[Tom Gordon (Harrogate and Knaresborough) (LD)]

My area of Harrogate and Knaresborough is covered by North Yorkshire council, which is part of f40, which my hon. Friend mentioned. On high-needs funding, we are 146th out of 151. That is causing real challenges in that rural setting, with children sometimes having to travel for hours to get to school. Does my hon. Friend share my concerns about those low levels of funding, which are compounded by the cut to the rural services delivery grant that local authorities receive?

[Sarah Dyke]

I will touch on that. Delivering education in a huge rural county has so many pressures and complexities and my hon. Friend is absolutely right to bring that up.

Let me give a couple of examples of children who are suffering and whose educational needs are not being met in my constituency of Glastonbury and Somerton. One of them is Jensen from Ilchester. He is only seven years old, but has been experiencing severe mental health distress while awaiting a long overdue neurodevelopmental assessment. His mother told me that he has lost all enjoyment in life. He misses his education and his friends, and all the while he is being passed between services. Jensen is not alone in that situation.

Many other children in Glastonbury and Somerton face similar challenges: Charlie from Castle Cary, for example. He has an EHCP, but his school is simply not able to meet his needs. His mother said that he has been left for months without his educational needs, as specified in his EHCP, being met. As a result, his behaviour at school and his mental health are declining. The differential in DSG funding means that children like Jensen, Charlie and many others heartbreakingly cannot get the support that they deserve. Families are being left to suffer alone, fighting a system that is just not working for them.

We know that the system is broken. The Isos report released last year found that all actors within the system are behaving rationally—schools, councils and parents—but the system is just not up to scratch. The funding model needs to be reformed to make it more responsive to changes so that individual schools can receive funding based on need. I urge the Minister to consider reviewing the funding formulas for both schools and high needs.

The Liberal Democrats have a plan to invest in our education sector above the rate of inflation so that we can ensure that all schools have the capacity to operate sustainably. We must also give our local authorities the financial support that they need. The previous Conservative Government left schools to crumble and forced councils to do more with less, impacting our children’s education. The persistent budgetary strain does not allow local authorities to create long-term plans for children with SEND, so we would also set up a dedicated national body for SEND to act as a champion for children with complex needs and ensure that they receive tailored support.

Without major reforms and changes to funding, we will continue to see a landscape with uneven funding where children are badly let down and schools cannot provide the support that is needed. I urge the Minister to take action, invest in education, invest in our children and invest in our future.

17:04

[Gideon Amos (Taunton and Wellington) (LD)]

It is a pleasure to serve with you in the Chair, Ms Butler. I congratulate my hon. Friend the Member for Tewkesbury (Cameron Thomas) on bringing us all together for this important debate to highlight the inequity of the system that built up under the previous Conservative Government and became more and more entrenched over those years. I am only sorry that more Conservative Members did not come to pay attention to this issue today. It is a huge factor in the wellbeing of children in all our constituencies, up and down the country.

As my hon. Friend the Member for Glastonbury and Somerton (Sarah Dyke) has pointed out, Somerset is one of the f40 local authorities and therefore one of the worst funded local education authorities. A child educated here in Westminster receives £4,000 more funding as a pupil than a child in my Somerset constituency of Taunton and Wellington. At the same time, the demand for SEND in places like Somerset has risen enormously. There has been a 60% increase in placements between 2014-15 and 2023-24 and, as a result, provision in Somerset, as in a lot of other places, is frankly unacceptable. It is not good enough and it needs to change.

Historical special educational needs funding, and the pattern for the national funding formula, is part of the problem. Spending should be based purely on current local need and not on historical need, as the Institute for Fiscal Studies has pointed out in an important report. It says:

“The use of historical spending patterns as a factor in the 2018 high-needs NFF also helped to cement geographical inequalities in high-needs funding that had arisen over time”.

It goes on:

“The historical spend element determines 25% of the overall formula allocation and drives a large element of the variation in funding across areas. This bakes in…arbitrary differences in council funding that have arisen over time, and lead to large variability in funding per high-needs pupil across councils”.

On the high needs block part of the direct schools grant, it says:

“The present high-needs funding system was introduced in 2018, when numbers were mostly stable, and it incorporates many historical measures of need and spending that already drive substantial geographical differences in spending per pupil. It is ill-designed for the present context of rising need”.

The f40 organisation has said:

“More than 20% of high needs funding is based on a local authority’s historical SEND spending, which bears no resemblance to today’s funding landscape”.

As the Institute for Fiscal Studies has pointed out, the system urgently needs reform.

Part of the problem is the problem of local government funding generally. In Somerset, £2 out of every £3 of council tax goes on care, whether that is adult social care or care for children, including special educational needs funding. It is no wonder that the outgoing Conservative leader of Somerset county council described that as a “time bomb” that “is ticking”. It is unfortunately likely to go off and affect children and families across Somerset, who are suffering the consequences of the legacy that our councillors are now trying to deal with. As my hon. Friend the Member for Harrogate and Knaresborough (Tom Gordon) pointed out, the withdrawal of the rural services delivery grant has compounded the problems and challenges for authorities such as Somerset, which have a low property base value across the county compared with property values in other part of the country and have historically low income levels as a result.

The national funding formula therefore has to be improved. The f40 organisation—I congratulate my hon. Friend the Member for Glastonbury and Somerton on her work with f40—has said:

“Government is aware of the unfairness and has indicated that it wishes to level up, but it is a very slow process and, at the current rate, will take around 20 years for equitable funding to be established. That is a whole generation of children. Children should have the same opportunities and resources, regardless of where they live or go to school”.

I am sure Members across the House agree with that and I urge the Minister to make good on that promise to reform the system.

Three things in particular need to be done. First, we need greater support within schools for special educational needs children. That will reduce costs later; we all know early intervention matters for younger children and has the most effect. Secondly, we need more hubs locally providing specialist provision and to not rely on the private, unregistered schools sector for much of our special educational needs provision. That is highly costly and not serving pupils’ best interests because it means transporting them long distances. Thirdly, we need more investment, which comes back to reform of the national funding formula. Liberal Democrats particularly want to see reform of local government funding and social care funding, but also above-inflation increases in school funding and a dedicated national SEND authority. That is the kind of reform we need to see in this Parliament and I hope very much the Government will deliver it.

17:09

[Steff Aquarone (North Norfolk) (LD)]

It is a pleasure to serve under your chairship, Ms Butler. I refer Members to my entry in the register of interests as a serving Norfolk county councillor. Across all the areas that the DSG exists to support, Norfolk is struggling. Early years settings in North Norfolk are under mounting pressures from the national insurance hike, rising wages and spiralling costs.

For many providers, there is simply not enough money coming in to match what they need to survive. It is estimated that 80% of the income from early years settings now comes from Government-funded childcare. When that funding does not match what is needed, these settings get into deep trouble. In North Norfolk, we cannot afford to lose them. Without childcare for working-age parents in my rural constituency, families who have cherished the area for generations will be forced to move.

The risk of a demographic doom spiral is huge. If schools and nurseries close, working-age people will not be able to both work and have families. If working families cannot survive and thrive in rural North Norfolk, people will not have children. We are already seeing an alarming pattern of those with children not going there. If there are no children, there will be no working-age people of tomorrow. That goes for all children, of all ages, abilities and aptitudes. It is a worrying slippery slope for our area both economically and in supporting vital services such as adult social care.

Good, accessible and affordable childcare is a basis on which we can build our rural economy. That is why, as a candidate, I marched 10 miles in protest at the closure of childcare provision in Wells; we got it reopened thanks to the hard work of parents. It is also why, just last week, I protested the proposed closure of East Ruston nursery with worried local parents who depend on it. Early years provision is an often undervalued but vital part of our education system and I am fighting to protect it in North Norfolk.

Meanwhile, Norfolk’s SEND provision is in crisis. The current system is not helping schools, parents, teachers or the local authority. Demand is rapidly outstripping supply, and Norfolk country council was at the last count running a deficit in the high needs block approaching £60 million. That is completely unsustainable, and we have to change the way our system supports these children and young people to give them a far better experience and to set them up for the rest of their lives.

I recently met a mother and her son at one of my constituency surgeries. He was a very smart, engaging and insightful young man. I shared excellent conversations with him about videogame development and computing, and his talent and potential shone through. However, the system has failed him. He has been out of education for three years, and his mother is battling the tribunal system to try to get him access to formal education again. The toll it has taken on both of them is clear and completely unacceptable, and he is not alone in facing such circumstances.

It pains me to think about a lost generation of talented and passionate young people who could miss out on bright futures because of the crisis in SEND provision. Trust has broken down, and we have to do better. We need to enable and encourage more mainstream inclusion for those for whom that is possible, we need to review the tribunal system, which is putting unnecessary stress on families and often producing unworkable outcomes for local authorities, and we need to better support schools in getting the best out of those pupils by ensuring that criteria for their inspection incentivises high-quality inclusion and looks not just at a pupil’s performance on paper, but at their readiness to learn.

Norfolk’s families were failed for many years by the disastrous duo: a Conservative Government and a Conservative-led county council. They have got rid of that Government, and I have no doubt they would have gotten rid of the Conservatives on the council, too, if they had not had their election snatched away from them. I am proud to stand side by side with the parents and children who are demanding better for their futures. I will hold the Government and the county council to account to make sure that is delivered.

17:13

[Ian Sollom (St Neots and Mid Cambridgeshire) (LD)]

It is an honour to serve under your chairship, Ms Butler. I thank my hon. Friend the Member for Tewkesbury (Cameron Thomas) for securing the debate and for his powerful speech. The individuals he mentioned, the school staff he represents, and the educators and local authorities across the country grappling with similar financial challenges will surely welcome his putting the spotlight on this pressing issue.

My hon. Friend is quite right that the pressures on all schools and, in turn, on the staff working in them—both the pressures of educating pupils with different and sometimes complex needs and the financial pressure of operating on budgets that simply do not stretch far enough at a time of high and rising costs all over the country—have increased significantly in recent years. I would be surprised if any MP had not had headteachers in their constituency tell them, as they have told me in St Neots and Mid Cambridgeshire, of the impossible choices that they face.

At the heart of this crisis lies a fundamental injustice: an outdated and deeply flawed mechanism for allocating the dedicated schools grant. The national funding formula, developed years ago and based mainly on the typical distribution of funding provided by local authorities at that time, and further ossified by funding protections, has created a postcode lottery that fails children and communities.

Let us be clear what that means in practice: similar schools in different parts of the country can receive dramatically different levels of support. That affects a wide range of children, including those who live in pockets of deprivation in parts of the country that are generally wealthier and so tend to receive lower dedicated schools grant funding. Although we know that there are other mechanisms to mitigate that, it ultimately means that a child with specific needs in one area can receive significantly less support than a child from a similar background and with the same needs in another area. That is not just administratively untidy; it is fundamentally wrong. For the organisation f40, which several of my hon. Friends have mentioned and which represents the lowest-funded education authorities in England—it now counts 43 of them in its membership—that is not a small anomaly but a systemic failure that affects hundreds of thousands of schoolchildren, who are being denied the education that they deserve through absolutely no fault of their own.

We feel that acutely in St Neots and Mid Cambridgeshire. Cambridgeshire ranks 133rd out of 151 local authorities in the funding allocation. Our schools receive £6,133 per pupil in the schools block element, compared with the national average of £6,467. If Cambridgeshire schools were funded at a level equivalent to those of our neighbours in Lincolnshire, a typical primary in my constituency would receive an additional £118,000 per year. If the playing field were level with another neighbour, Peterborough, Cambridgeshire would see £33 million in additional funding. Meanwhile, the demand for EHCPs has grown fast: it has risen by 91% in Cambridgeshire since 2017, far outpacing the 72% increase in funding for the high needs block over the same period. The widening gulf means more children waiting longer for vital support, more pressure on already stretched staff and more families reaching breaking point.

The Liberal Democrats believe that equal opportunity in education is not a luxury, but a fundamental right. Every child deserves access to the same resources and opportunities, regardless of their postcode. Although we understand that regional variation has its place—indeed, we championed pupil premium funding to direct resources towards disadvantaged children—it should not have come at the expense of creating the current disparities.

The problem is reaching breaking point. With schools expected to somehow fund teacher pay rises from existing budgets, those with lower DSG allocations face impossible choices: cutting staff, reducing subjects or eliminating those enrichment activities that are vital to a well-rounded education. The Liberal Democrat solution is clear. We would invest in education above the rate of inflation, ensuring that all schools can operate sustainably regardless of geography. We would extend free school meals to all children on universal credit, relieving pressure on family budgets, and place a dedicated mental health professional in every school, recognising that wellbeing and academic achievement are inextricably linked.

Pupil needs have evolved dramatically and our funding system needs to evolve with them. The time for just tinkering at the edges of the formula has passed. We need comprehensive reform that guarantees an equal base level of funding for all pupils, with appropriate additional support reflecting specific school, pupil and area needs. Our children deserve nothing less.

17:20

[Rebecca Paul (Reigate) (Con)]

It is a pleasure to serve under your chairmanship, Ms Butler. I draw attention to my entry in the Register of Members’ Financial Interests.

I am pleased to respond to this important and thoughtful debate on behalf of the Opposition. I thank the hon. Member for Tewkesbury (Cameron Thomas) for securing it, and I completely agree with his remarks about the importance of teaching children in the home as well as the school. It is clear from all the contributions we have heard that, across all political divides, we share a desire to see all children, regardless of their location, their background or the complexity of their needs, accessing high-quality education in a setting that supports their potential. That vision depends heavily on fair and sufficient funding for our schools. As we have heard, the dedicated schools grant is at the heart of that.

It would be appropriate, before turning to the concerns raised today, for me to briefly review the last Government’s principal achievements in this space, all of which have a bearing on any debate on the dedicated schools grant. Hon. Members will recall that it was a Conservative Government that took the step of reforming school funding through the introduction of the national funding formula, thereby ending the postcode lottery that, for too long, left similar schools receiving vastly different allocations. The national funding formula delivered greater transparency and a demonstrably fairer methodology, and drew a clearer line between the needs of pupils and the funding schools received. However, as the hon. Member for Tewkesbury set out, there are clearly still some disparities. It is right that we look at those and consider what can be done to address them. I look forward to hearing the Minister’s view on that.

It was also a Conservative Government that increased core schools funding to record levels. Between 2010 and 2023, funding per pupil rose in real terms, with particular investment in the high needs block of the dedicated schools grant. In fact, by the final year of the previous Government, we had delivered a £10 billion increase in overall schools funding compared with 2019-20, including a £4 billion increase to the high needs budget, bringing total high needs funding to £10.5 billion in 2023-24. We backed that up with targeted support for pupils with SEND through capital investment focused on expanding special school places and improving facilities across the country.

It was the Conservative party that took decisive action to address poor-quality provision, cracking down on unregistered settings and increasing the powers of local authorities and Ofsted to take action where provision fell short. Our approach was unambiguously vindicated, as England soared up the Programme for International Student Assessment league tables between 2009 and 2022 in maths, English and science. In that period, England went from 21st to seventh for maths, from 19th to ninth for reading, and from 11th to ninth for science. Moreover, in December 2023, children in England were named best in the west for reading, and in December 2024 they were ranked the best at maths in the western world in the 2023 TIMSS—trends in international mathematics and science study. Regrettably, where England has surged in international education rankings, Labour-led Wales has slumped. While England went from 21st to seventh in maths, Wales went from 29th to 27th. While England went from 19th to ninth for reading, Wales stayed 28th. While England went from 11th to ninth for science, Wales slumped from 21st to 29th.

Ultimately, whether in England or Wales, there will always be more to do, as the hon. Member for Tewkesbury highlighted, but I can say without hesitation that the legacy left by the last Government on school funding and educational outcomes is overwhelmingly positive, based on a relentless focus on sustained investment and principled reform, and a clear commitment to inclusion. It is not just our record; it is the yardstick by which the current Government must be judged.

Our position today is consistent with that record: we support fair funding, we support the principles behind the dedicated schools grant and we believe in the importance of local flexibility and accountability. We support the overarching aims of the SEND and alternative provision improvement plan, and the continuation of investment to support the transition to new national standards, but we also recognise the real pressures that local authorities and schools are facing. While funding has increased, so too has demand, and the current system is struggling to keep up.

The number of pupils with an education, health and care plan has more than doubled in the last decade. Local authorities up and down the country—Conservative, Labour and Liberal Democrat alike—are grappling with high needs deficits, a growing wave of legal challenges and spiralling parental frustration. In my constituency, SEND makes up an ever-growing proportion of casework, and I hear every week from parents struggling to secure the provision that their child so desperately needs. It is little wonder that the Public Accounts Committee recently found that the current system risks creating a “lost generation” of children without intervention from central Government.

The National Audit Office was equally blunt in its 2024 report on SEND provision, which made it clear that, without systemic reform, there will be systemic collapse. The crux of the matter is that, as of January 2024, approximately 1.9 million children and young people in England were identified has having special educational needs, with 1.7 million attending school. Despite the 58% real-terms increase over the last decade in high needs funding, which reached £10.7 billion in 2024-25, the system is not delivering improved outcomes for those children and young people.

The financial strain that is placing local authorities under is deeply alarming. The NAO estimates that, by March 2026, 43% of local authorities will have deficits exceeding or close to their reserves, leading to a cumulative deficit between £4.3 billion and £4.9 billion. The situation is exacerbated by the impending end of accounting arrangements that currently prevent those deficits from impacting local authority reserves. Without a clear plan to manage the deficits, many councils risk issuing section 114 notices, effectively declaring bankruptcy.

Demand for education, health and care plans has surged by 140% since 2015: the number of children with one reached 576,000 in 2024. That increase, coupled with long waiting times—only 50% of EHCPs were issued within the statutory 20-week target in 2023—has eroded confidence among families and children in the system’s ability to meet statutory and quality expectations. Sadly, at the very moment that clarity and support were most needed, the Education Secretary introduced the Children’s Wellbeing and Schools Bill, which would do nothing less than destroy standards in English schools.

No less serious are the broken promises on compensation for national insurance contributions, which have left schools in an impossible funding situation. It is reported that some schools face funding gaps of up to 35% for those additional NIC costs. That shortfall will only exacerbate existing financial pressures, forcing schools to divert funds from essential services, potentially leading to the loss of valued staff, reduced capacity to accommodate pupils with special needs and a generally lower standard of education provision.

In summary, we are at a point where the Government are asking councils to maintain high-quality provision even as they manage large accumulated deficits, some exceeding £100 million, without knowing how or when those will be resolved. Schools have been asked to go further and faster on inclusion without the confidence that adequate support services will be in place to back them up. At the same time, parents are being asked to trust a system that all too often feels both overwhelming and overwhelmed.

I want to put a number of questions to the Minister that reflect the concerns raised by Members, local authorities and professionals across the education sector. First, the Government have confirmed that they will continue funding local authorities through the dedicated schools grant for the foreseeable future, but what is the long-term plan for managing the high needs deficits that many councils have accrued? The safety valve programme and the delivering better value programme provide some support, but they are not available to every authority and they do not provide a long-term solution. Will the Minister confirm whether the dedicated schools grant will remain ringfenced beyond 2025? Will she guarantee that local authorities will not be forced to divert core council budgets to prop up SEND provision at the expense of other vital services?

Secondly, on transparency and accountability, colleagues have spoken of the challenges that their local schools face in not just securing adequate funding but navigating a system that is complex, fragmented and adversarial. Parents are turning to tribunals in record numbers, while local authorities are caught between an ever-growing web of statutory duties and finite budgets with which to deliver them. What steps are the Government taking to reduce the number of SEND tribunals, and what support will be offered to schools to manage rising demand?

Finally, I want to address the issue of place planning and capacity. One of the most frequent complaints we hear from local authorities is about the mismatch between need and availability, particularly in relation to specialist settings. This is not just about funding; it is about the ability to plan, build and adapt provision to changing demographics and trends. Will the Minister set out what work is being done to support local authorities in expanding specialist provision where it is most needed? How will the Department ensure that capital investment keeps pace with rising demand? What role does she see for the dedicated schools grant in ensuring that sufficient places are available for all?

I will end my long list of questions by thanking the hon. Member for Tewkesbury for securing today’s debate. The dedicated schools grant is a critical part of how we deliver education in this country, but if it is to work as intended, particularly in relation to SEND, it must be fair, transparent and sustainable. I look forward to hearing from the Minister how the Government will make it so.

17:30

[The Minister for School Standards (Catherine McKinnell)]

It is a pleasure to serve under you in the Chair, Ms Butler. I congratulate the hon. Member for Tewkesbury (Cameron Thomas) on securing this debate on the dedicated schools grant, and on the important speech that he gave on such an important subject. Getting this right is a key part of achieving the Labour Government’s aim of breaking down the barriers to opportunity for every child and making sure that the link between background and success is truly broken. That is why we are putting education back at the centre of national life again, and why we have prioritised education funding by increasing the overall core schools budget by £3.2 billion in 2025-26, taking the overall core schools budget to £64.8 billion this year.

Like many Members, I regularly visit schools in my constituency. I know that individual schools face different challenges when it comes to their budgets. The unfunded spending commitments that this Government inherited mean that we have to take tough decisions to restore the public finances, but I am proud that against that backdrop we are putting the money where our mouth is and committing more funding to enable every child to achieve and thrive. The Department for Education will continue to support teachers and school leaders to deliver on that as much as we can. We are ensuring that schools are supported to ensure that they spend their money as efficiently as they can while delivering the best possible life chances to as many children as they can. That means supporting them with best practice for budgeting and financial planning, support and mentoring for school business professionals, and giving hands-on support through school resource management advisers who provide independent and tailored advice to schools on how they can best maximise every pound that they spend. More widely, the national funding formula distributes funding for mainstream schools, as we have discussed already, via the dedicated schools grant. It is based on pupils’ needs and characteristics, so that we can direct the funding to where it is needed.

In 2025-26, £5.1 billion of the school national funding formula has been allocated through deprivation factors, with £8.6 billion allocated for additional needs overall. That is 17.8% of total core funding through the formula, so £1 in every £5 goes on those factors, which helps schools in their vital work to close attainment gaps. I have listened very carefully to the debate, but I must reiterate that the purpose of the national funding formula—I think hon. Members appreciate this—is not to give every pupil the same level of funding per pupil. It is right that pupils who need additional investment attract the additional funding that helps schools respond to and meet their needs. That means that schools in more expensive areas, such as London, attract higher funding per pupil to reflect the higher costs of being at school in London, because of the higher costs that are faced.

However, I recognise that schools have historically struggled with chaos and short-termism in school funding. When we came into government, because of the timing of the general election, in 2025-26 we wanted to give schools certainty about their funding and to minimise disruption for them. Consequently, we prioritised keeping the same funding formula, so that schools had certainty about it, and we also prioritised the speed of allocating that funding over making any changes to the national funding formula that might have been made—but I can confirm that for 2026-27 we are reviewing the national funding formula. I have listened very carefully to what has been said today, because we recognise the importance of establishing a fair funding system that directs funding to where it is most needed.

[Richard Foord]

After the Government conduct that review of the national funding formula in 2026-27, will the Minister set out what additional funding she expects to have to put into the formula that urban councils such as Westminster might attract to cover their costs?

[Catherine McKinnell]

I think the hon. Gentleman will appreciate that I cannot get into the detail of a particular local authority area, or indeed a particular aspect of the funding. He will also appreciate that the national funding formula is fairly complex and obviously any changes to it will be very carefully considered, so that we make sure that it is allocated fairly. Nevertheless, I appreciate the issues that various hon. Members have raised today about the different challenges faced by different parts of the country, different demographics and different geographies. Obviously, all those factors will need to be taken into consideration.

Members have also touched on the issue of pay. In its written evidence to the review body, the Department proposed a 2025 pay award for teachers of 2.8%. We were clear that schools will be expected to fund that award from the overall funds they will receive next year, including the additional £2.3 billion provided in the autumn Budget. The schools’ costs technical note, which was published in March, forecast a £400 million headroom in school budgets nationally in this financial year before staff pay awards. As I said at the beginning, I recognise that individual schools will have to balance funding and costs differently, which will matter in how any staff pay award might affect their budget. We will continue to support schools as they navigate these decisions, which are in line with the asks of the rest of the public sector, too.

[Tom Gordon]

I recently met a number of schools in my constituency; part of the problem that they have in balancing the books is the ongoing lack of reasonable amounts of maintenance funding. Last year I met the Under-Secretary of State for Education, the hon. Member for Portsmouth South (Stephen Morgan), who is the Minister with responsibility for early years, to discuss this issue. Will that funding also be considered when we talk about funding allocation, because in places such as Harrogate, where we have schools that are hundreds of years old, the cost of maintaining those schools far outstrips the cost of maintaining new builds in urban areas?

[Catherine McKinnell]

I appreciate the challenge that the hon. Gentleman faces. I also appreciate that some of these capital challenges, which are obviously revenue challenges as well for some schools, are a big challenge. We have seen chronic under-investment in our school estate over many years. However, my hon. Friend the Member for Hexham (Joe Morris) and his constituents have sadly experienced that a school built only eight years ago also appears to be crumbling now. We have a significant backlog of repairs and maintenance, and support that has to be given to schools to get them up to a standard whereby they can deliver the education that we know children deserve. Obviously, we will continue to look at these issues as we navigate a difficult financial situation. We are acutely aware of the challenges that many schools face in maintaining their estate.

Fundamentally, each of our decisions is based on the determination to build a firm foundation upon which to rebuild our public services; some of that is about what we deliver and some of it is about the infrastructure. That is because we are determined that all children and young people with special educational needs and disabilities also receive the right support, so that they can succeed in their education and as they move into adult life. High needs funding will increase by £1 billion in 2025-26, which will bring the total to over £12 billion. Of that total, Gloucestershire county council is being allocated over £105 million through the high needs funding block of the dedicated schools grant, calculated using the high needs national funding formula, which is an increase of over £8 million. The high needs allocation is an 8.3% increase per head in the two to 18-year-old population compared with 2024-25. That funding is to support the ongoing costs of special educational needs and disability provision.

To be clear, we do not expect local authorities to use that increase in high needs funding to pay down historical deficits. The structure of the high needs funding formula is largely unchanged. As I said, we need to take time to consider what changes might be necessary in future years to ensure that the system is fair and directs funding to where it is needed, and supports any reforms that we want to bring forward in relation to special educational needs and disabilities.

The Government recognise the strain that the rising cost of special educational needs and disabilities provision is putting on local government, and particularly the impact on councils’ finances. The statutory override is a temporary accounting measure that separates out local authorities’ dedicated schools grant deficits from their wider financial position to help them manage their deficits, and we are working with the sector to find a way forward. We will set out plans for reforming the SEND system in more detail later this year, which will include supporting local authorities to deal with historical and accruing deficits as part of any period of transition from the current SEND system to any new system. That will also inform any decision to remove the statutory override.

[Tom Gordon]

I thank the Minister for being generous with her time. I want to press her on her point about working with local authorities. Given that some councils now under Reform control seem to be getting their instructions by diktat from their leader, the hon. Member for Clacton (Nigel Farage), is she disappointed, like I am, that no Member of the Reform party is present for this important debate?

[Catherine McKinnell]

The hon. Gentleman makes his point well.

As a Government, we are determined that local authorities will be able to deliver those high-quality services for children and young people with special educational needs and disabilities, but in a financially sustainable way. Those two elements go hand in hand to create a stronger and more prosperous future for children and families. Many hon. Members have spoken about their constituents’ experiences, and we recognise that too many families and children are not experiencing the quality of SEND services and provision that they should expect, and that the rising cost of SEND provision is putting a significant strain on both local authority and school finances.

[Sarah Dyke]

The Minister describes the additional funding but, as I have explained, many parents and children are suffering with severe mental health issues; it is heartbreaking to see. The Liberal Democrats want to provide a dedicated mental health professional in every school, so that every child and parent has somebody to turn to when they need it. What steps are the Government putting in place to support parents and children who are facing mental health challenges?

[Catherine McKinnell]

The hon. Lady identifies an important issue. Yes, we have a big challenge in relation to special educational needs and disabilities, but we also face much wider challenges relating to young people’s mental health right across our school system. The Government are committed to ensuring that we have mental health professionals in every school and community so that children and families can get that support, whether it be within a school setting or outside if that is where they want to access it.

Hon. Members will appreciate that the spending review is ongoing. It is due to conclude in June, but our objective is to ensure that local authorities, schools and colleges can deliver high-quality services for children and young people with SEND. We will set out in more detail how local authorities will deal with their historical deficits as part of that consideration.

I again thank the hon. Member for Tewkesbury for bringing this matter forward, and all those who contributed to what has been a very thoughtful debate. I think there is a large amount of consensus on what we want to achieve for children and young people: getting the best outcomes from our dedicated schools grant. The Government have made clear our commitment to addressing the challenges as part of supporting children and young people to achieve and thrive. I am determined that progress will be made.

I want to give my final word of thanks to all those who work in our school system in the interests of our children and young people, in Gloucestershire and across the country. Indeed, I realise I meant to come back to my hon. Friend the Member for Hexham to particularly commend the staff at Prudhoe community high school, who have been working incredibly hard to minimise the impact on the children and young people who are taking their GCSEs, A-levels, BTECs, T-levels and all the assessments going on this summer. We know that school leaders and teachers are working tirelessly, regardless of any debate we have in this place about school funding or otherwise, to deliver the best outcomes for the children in their area. They should know that they have a Government who are on their side, who will support them to deliver that, despite the very challenging economic circumstances that we have inherited. We need to deliver the very best for all our children and young people. We have pledged to review the funding system to help to support and achieve that.

17:46

[Cameron Thomas]

I thank all hon. Members for their speeches. My hon. and gallant Friend the Member for Honiton and Sidmouth (Richard Foord) equated the differential in funding to an entire teacher’s salary. The hon. Member for Hexham (Joe Morris) contextualised the crisis faced by constituents with inadequate transport infrastructure and unfit buildings. I join him in thanking our teaching staff for their inspiring work ethic. My hon. Friend the Member for Thornbury and Yate (Claire Young) explained how her diverse constituency suffers from not being rural enough and not being urban enough. Her young people do deserve more.

My hon. Friend the Member for Glastonbury and Somerton (Sarah Dyke) highlighted the legacy inequity locked into the current system. My hon. Friend the Member for Taunton and Wellington (Gideon Amos) called for the national funding formula to reflect current need, not historical need. My hon. Friend the Member for North Norfolk (Steff Aquarone) broadened the picture by explaining that families are having fewer children because they struggle to support even themselves.

I thank the Liberal Democrat spokesperson, my hon. Friend the Member for St Neots and Mid Cambridgeshire (Ian Sollom), who spoke of the postcode lottery perpetuated by a systemically flawed funding formula. I thank the Opposition spokesperson, the hon. Member for Reigate (Rebecca Paul), who joined our call to review the national funding formula, even if her recollection of her party’s record differs from that of the rest of the country, not least my teachers.

I thank the Minister, who described her ambition to put education at the heart of the Government’s national rebuild. I am pleased that the Government will commit to reviewing the national funding formula. I am sure she will not mind if my colleagues and I chalk that one up to this debate. Once more, Ms Butler, I thank you for the honour of bringing this debate under your chairship.

Question put and agreed to.

Resolved,

That this House has considered the Dedicated Schools Grant.

17:48

Sitting suspended.