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The Parliamentary Under-Secretary of State for Education (Caroline Dinenage)
It is a pleasure to serve under your stewardship, Mr Gray. I congratulate my right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames) on introducing this really important debate on funding for schools in West Sussex. He presented it in his usual robust, assiduous and charming style. I also congratulate his colleagues from West Sussex, who present a formidable, united front on this issue. My right hon. Friend the Member for Arundel and South Downs (Nick Herbert) and my hon. Friends the Members for East Worthing and Shoreham (Tim Loughton), for Worthing West (Sir Peter Bottomley) and for Horsham (Jeremy Quin) are a veritable tag team to be reckoned with. I know that when they go and speak to the Secretary of State this afternoon, they will make their case powerfully and persuasively, as they have done today. I know we all share the same ambition: to see a country that works for everyone, where schools improve and where every child, no matter which county, constituency or part of the country they live in, has the opportunity to go to a good school, to get a great education and to fulfil their potential.
Let me start with the fundamental reason we are here today: to make sure that our children benefit from an outstanding education. We need good schools in every area of the country. Investing in education is truly an investment in the future of our nation as a whole. That is why we are committed to providing equal opportunity for all children to succeed, irrespective of where they come from in the country and where they happen to grow up. A fair funding formula is a fantastic way of achieving that and providing a crucial underpinning for the education system to act as a motor for social mobility and social justice, as we all desire.
As many of my hon. Friends have said today, the Government are prioritising investment in education. As pupil numbers increase, so will the amount of money for schools. This year the core school budget will be more than £40 billion—the highest on record—which includes £2.5 billion for our most disadvantaged children through the pupil premium. That funding is also protected for the rest of this Parliament. The current funding system is holding us back, though. I do not think anyone in this Chamber disagrees with that. It is preventing us from getting the record amount of money that we are investing to the parts of the country where it is most needed.
Sir Nicholas Soames
I am grateful for the constructive and helpful way in which the Minister is winding up the debate. To pick up her point about the welcome increase in education expenditure and the number of new pupils coming into schools, the excellent St Paul’s Catholic college in Burgess Hill—a really good school in my constituency—has had a 31% increase in pupils, but there is so little money and room to manoeuvre in its staff budget that it does not have enough staff to cope with that 31%. It makes do, but it does not have adequate staff, which is one of the problems of the existing baseline and why the school needs the transitional funding to get through to the national funding formula being introduced.
Caroline Dinenage
My right hon. Friend makes an excellent point. I will talk shortly about the transitional funding, which I know he and his colleagues from West Sussex are all very keen on.
We are clear that without reform the funding system will not deliver the outcomes we want for our children. As many Members have said today, it is outdated, inefficient and unfair. There are two reasons for that: first, the amount of money that local authorities receive is based on data that have not been updated for more than a decade, so although local populations have changed the distribution of funding has not, and the impact of that is hugely unfair. We have heard many of the relevant figures today. West Sussex is receiving just under £4,200 for every pupil, whereas in Birmingham, for example, that figure is £5,200. Although there will always be variations in the amount different areas receive, because their needs and local costs vary, a system that creates such significant differences cannot be fair.
Caroline Dinenage
We are still in the consultation period, the next stage of which will be announced shortly, so I am not able to comment on that today.
Different local authorities take very different decisions about how to distribute their funding. There are 152 different local formulae, so a primary pupil in West Sussex with low prior attainment currently attracts £863 in extra funding, whereas in Trafford, for example, they attract more than £3,000 extra, and in four local authorities they get nothing. My county, Hampshire, provides no extra funding for pupils in receipt of free school meals, whereas Warrington chooses to allocate more than £3,000 to each secondary pupil in the same situation. That is why we are committed to fixing the system.
Earlier this year we launched a consultation on the new fairer funding formula for schools. The second stage, including the details of the national funding formula, will be announced in the next few weeks. Our aims are clear, and I hope Members from all parts of the House will agree that they are worthy ones. We want to create a formula that is fair, objective, transparent and simple. It should be clear how much funding is available for each pupil and that should be consistent wherever they are in the country. From 2018-2019, we intend to begin moving towards a system where individual school budgets are set by a national formula and not by 152 locally devised ones.
The reforms will mean that the funding is allocated fairly and directly to the frontline where it is most needed. They will also mean that funding reflects the needs of pupils, so the higher the need, the greater the funding. The reforms will be the biggest step forward in making funding fair in well over a decade. It is therefore vital that we take time to get them right. We need to debate the important principles that will underpin this and listen to the submissions that are coming back as part of the consultation. We have a responsibility to ensure that the system we set up now enables schools to maximise the potential of every single child.
I am aware of the concerns raised by hon. Members today that fairer funding for schools in West Sussex and other parts of the country is very much overdue. We agree that the reforms are vital, but they are also an historic change, which is why we have to take the time to consider the options and implications very carefully. We cannot afford to get this wrong. Crucially, we must consult widely with the education sector before we make changes. We will carry out the second stage of that consultation later this year and make final decisions in the new year. The new system will be in place from April 2018.
In the meantime, we have confirmed arrangements for funding in 2017-18 so that local authorities and schools have the information and certainty they need to plan their budgets for the coming year. That is so important, because a key message coming out of the first round of the consultation is about the ability to plan ahead and certainty about the future. Schools need to know where they stand.
Areas such as West Sussex, which benefited from the £390 million that we added to the schools budget in the previous Parliament, will have that extra funding protected in their baseline 2017-18, as they did in 2016-17, but I take on board the comments of my hon. Friend the Member for Worthing West, who said that West Sussex received a disproportionately low amount. We will look into that.
The next stage of our consultation, which is coming out shortly, will set out the detailed proposals for the national funding formula and show how the formula will make a difference to every school and local authority budget in the country. We will explain how quickly we expect budgets to change. We have been clear that we want schools to see the benefits of fairer funding as quickly as possible, but the pace of change must be manageable for them. The strong message is certainty and the need to be able to plan ahead. We fully take on board the real-term impact on budgets of the recent changes to pensions and national insurance contributions that my right hon. Friend the Member for Arundel and South Downs mentioned.
All local Members have spoken about the transitional arrangements. I hear them and I know that they will make a powerful case to the Secretary of State this afternoon when they see her. The Minister for School Standards has been working hard on the arrangements. As usual, we will finalise school funding allocations for the coming financial year in December, taking into account the latest pupil numbers from the October census.
Reforming the funding system to ensure that areas such as West Sussex are fairly funded is only half the story. As hon. Members have pointed out, as with all public services, it is vital that schools spend the money that they receive as efficiently as possible. The most effective schools collaborate through academy trusts and federations, or as part of teaching school networks or clusters. They share knowledge, skills, experiences and resources to drive the important changes that support their school’s education or vision. Schools are best placed to decide how to spend their budgets and achieve the best possible outcomes for their students. Lots of schools in West Sussex are already doing that, despite having very low funding compared with other parts of the country. We recognise that the Government have a role to play in ensuring that schools are supported to make every single penny of their funding count. That is why we launched a package of support for schools in January that includes new guidance and tools to help them make the most of the funding they receive, and we will continue to update and improve that offer to schools.
I am enormously grateful for the support that my right hon. Friend the Member for Mid Sussex and the other West Sussex Members have given to the agenda. They have all raised important issues. I hope that they are reassured, more than anything, about the Government’s long-term commitment to reform school funding so that there is a fairer system for children in West Sussex and across the country—a system where funding reflects the real level of need, so that pupils are able to access the same educational opportunities wherever they happen to live.
A fair national funding formula underpins our ambition for social mobility and social justice, and will mean that every pupil is supported to achieve the very best of their potential, wherever they happen to live. Although we should recognise that there are challenges currently, and that challenges will lie ahead, I hope all hon. Members give support to and work with the Government to achieve that vital aim.
Question put and agreed to.
Resolved,
That this House has considered the funding of West Sussex schools.