Question to the Department for Education:

To ask the Secretary of State for Education, if he will assess the (a) effect of pupil-led funding on the financial viability of small rural schools in sparsely populated areas and (b) effectiveness of all other aspects of the school funding formula.

The national funding formula (NFF) provides a lump sum of £110,000 for every school as a contribution to the costs that do not vary with pupil numbers. This gives schools certainty that they will attract a fixed amount each year in addition to their pupil-led funding.

The formula also includes a sparsity factor which targets £25 million of funding to these schools. A small rural secondary school in a sparsely populated area could attract up to £175,000, in total, through the lump sum and sparsity factors. When the lump sum is coupled with the sparsity factor, this provides significant support for the small and remote schools that play an essential role in rural communities. The Department also supports all schools to manage their resources effectively.

The NFF has allocated an increase for every pupil in every school in 2018-19, with up to 3% increases for underfunded schools. In 2019-20, all schools will attract an increase of at least 1% per pupil compared to their 2017-18 baselines. Those schools that have been historically underfunded will attract up to 6% more, per pupil, compared to 2017-18. This is a further 3%, per pupil, on top of the 3% that they gained in 2018-19.

Many local authorities have chosen to move towards the NFF locally, with 73 local authorities moving all their factor values towards the NFF, and 41 in the NFF’s first year – matching the NFF factor values almost exactly.

The Department will continue to assess the impact and effectiveness of our reforms on an ongoing basis.