National Funding Formula: Schools/High Needs

Catherine McKinnell Excerpts

Wednesday 14th December 2016 Commons Chamber

[Justine Greening]

As I said in reply to my right hon. Friend the Member for Wokingham (John Redwood), the additional uplift that was provided last year will continue into the forthcoming year, after which we will introduce the national funding formula in 2018-19. Today, we are coming forward with a fundamental solution to a long-term problem that has been building up not just over the last decade, but for 20 years—some people would argue it has been 30 years in the making. Now is the time, finally, that we sort this out.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

Will the Secretary of State confirm whether an area cost adjustment multiplier will be applied as a result of the new formula? The funding gap between the national average and what is received by schools in the north-east stands at £45 million a year. Will that gap increase or decrease as a result of the formula?

[Justine Greening]

The formula includes an area cost adjustment. It will be based on a hybrid measure that will look at not only general labour market costs but those relating to teachers, reflecting consultation feedback. It is also one reason why expensive parts of the country such as London will continue to be well funded, even under this formula.