Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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The Minister for School Standards (Nick Gibb)
It is a pleasure to serve under your chairmanship, Mr Evans. I congratulate the hon. Member for Wallasey (Ms Eagle) on securing the debate and on her excellent speech.
I am delighted to be able to address this issue at a time when the Government have recently announced the outcome of our consultation on the national funding formula—an historic and necessary reform that will, for the first time, distribute funding on the individual needs and characteristics of every school in the country. This Government believe that all children should have an education that unlocks their potential and allows them to go as far as their talents and hard work will take them.
We are making significant progress. More schools than ever before are rated good or outstanding by Ofsted, and 1.8 million more children are in good or outstanding schools today compared with 2010, including 90% of schools in the Wirral. The attainment gap between poorer children and their wealthier peers is closing; it has not closed totally. We have launched 12 opportunity areas to drive improvements in parts of the country that we know need to and can do better.
Those improvements have been made against a backdrop of an unfair and arbitrary funding system. Similar schools across the country get markedly different levels of funding for no good reason and resources are not reaching the schools that need it most. The funding system has acted as a barrier to improvement, when we need it to be a support. That is why we are delivering on our promise to reform the unfair, opaque and outdated school and high needs funding system, and introducing a national funding formula.
Frank Field
A prime way in which the Government have tried to direct resources to the poorest pupils, sometimes to schools in the poorest areas, has been through the pupil premium. As I said in my intervention on my hon. Friend the Member for Wallasey (Ms Eagle), the data from housing benefit will be lost as universal credit is being rolled out. I ask the Minister to take away the idea, and talk with the Department for Work and Pensions, so that the data that is in universal credit will be made available on housing circumstances to councils, so that they can automatically offer registration for the school premium and free school dinners.
Frank Field
Will the Minister take the issue away and, when he has consulted his colleagues in the other Department, write to me please?
Nick Gibb
I am happy to write to the right hon. Gentleman, but these issues are being considered as we speak.
Given the significance of this reform, it was vital that we took into account as many views as possible, and the consultation process generated over 26,000 individual responses and responses from representative organisations, and we considered all of those views. The existing system is out of date. It is based on data and decisions from over a decade ago. Funding for each area has been determined by simply rolling forward the previous years’ allocation, adjusting only for changes in the total number of pupils in each area and ignoring all the other changes.
Ms Angela Eagle
I have read some of the right hon. Gentleman’s responses to other debates like this and he spends a great deal of time not responding to the actual questions that have been raised, by telling us in great technical detail about what the national funding formula is meant to do. Will he address some of the issues that I raised about the unfairness of Kingsway Primary School, which has 53% of pupils on free school meals, having a 19% cut in its funding, under the system that he is praising? How can that kind of result possibly be right or fair?
Nick Gibb
If the hon. Lady will be patient, I will come to each of those issues and specifically talk about the funding position of Kingsway Primary School, among the other schools that she mentioned, but I want to put this debate in the context of the reality of the situation that we are seeking to address.
When the proportion of secondary school pupils eligible for free school meals in London fell by more than 5% between 2007 and 2017, more than 25 times the decline nationally, the funding system did not respond to that change in the wealth level of London as the capital city. Addressing these damaging inequalities in the current system represents the biggest improvement in the school funding system for a decade, and from April 2018 we will introduce a national funding formula, which will, for the first time, put the funding system firmly on track to deliver resources on a consistent and transparent basis to every school in the country.
In September we published full details of the school and high needs national funding formula and the impact that it will have for every local authority. We have also published notional school-level allocations showing what each school would attract through the formula. This means that for the first time everyone can see what the national funding formula will mean for them and understand why. Alongside addressing these historical injustices, the importance of ensuring stability for all schools was also a consistent message throughout the consultation process. In recognition of that, over the next two years local authorities will continue to set their own local formula in consultation with the schools in their areas, which will determine each individual school’s budget. This will provide a small but important element of flexibility for local authorities, to allow them to respond to the changes as they come through.
School funding, as the hon. Member for Wallasey acknowledged, is at a record high because of the choices we have made to protect and increase school funding, even as we faced difficult decisions elsewhere, across Whitehall, to restore our country’s finances, and to address the historic budget deficit that we inherited in 2010. We understand that just like other public services, schools are facing cost pressures, and in recognition of this we announced in July an additional £1.3 billion for schools and high needs across 2018-19 and 2019-20—over and above the funding confirmed at the 2015 spending review. This additional funding means that the total schools budget will increase by over 6% between this year and 2019-20. As the independent Institute for Fiscal Studies has confirmed, that will mean that funding per pupil for schools and high needs will now be maintained in real terms for the remaining two years of the spending review.
Ms Eagle
The right hon. Gentleman is taking as his baseline this financial year, yet there have been real terms cuts in schools for the last two years, as I thought I had explained, so he is trying to claim that there has been an increase, when in fact he is discounting the cuts that have already happened. He knows that it is not an accurate way of talking about what happened. Why doesn’t he just admit it?
Nick Gibb
There have been no cuts in funding to schools. There have been cost pressures, as I have acknowledged time and time again, that schools have absorbed, as have other parts of the public sector and parts of the private sector. There have been cost pressures of higher taxes, higher employer’s national insurance contributions and higher employer’s contribution to the teachers’ pension scheme, because we believe it is right that teachers’ pensions are properly funded, but I am telling the hon. Lady and this House that spending will rise in real terms on a per pupil basis.
I will now come to the issue she raised about her schools. As a consequence of the consultation process, we introduced a de minimis funding level for the very lowest funded schools. We introduced a de minimis funding level of £4,800 per pupil for the very lowest funded secondary schools in the country. St Mary’s College in the hon. Lady’s constituency received £5,625 per pupil, and that will rise by 1% to £5,680 according to the national funding formula. The national average under the national funding formula for a secondary school is £5,389. On top of that, the school will also receive £935 per pupil for every pupil who qualifies or has ever qualified for free school meals over the past six years.
Margaret Greenwood
Will the Minister clarify which school he is talking about?
Nick Gibb
I am sorry. I am talking about St Mary’s Catholic College in the constituency of the hon. Member for Wallasey. That school’s funding per pupil will rise from £5,625 to £5,680.
We also introduced a de minimis figure of £3,500 per pupil for the very lowest funded primary schools. Kingsway Primary School receives £5,376 per pupil, and that figure will rise to £5,422. On top of that, the school will receive £1,320 per pupil for every pupil who has ever qualified in the past six years for free school meals. The hon. Lady referred to 53% of pupils as qualifying at some point for free school meals—all those pupils will bring the school an additional £1,320 on top of the £5,376.
Nick Gibb
No, it is not receiving any cuts in funding at all. Its funding will increase from £5,376 per pupil to £5,422 per pupil. That is an increase of 0.8%. It is an increase in funding, not a cut. I acknowledge there are cost pressures facing schools, but to go around saying that schools have had their funding cut is simply not true. If I can refer to Eastway Primary School—
Nick Gibb
I will not give way again because we are running out of time. The hon. Gentleman seeks to cite the National Education Union’s schools cuts campaigning website, which says that schools are facing a cut in funding. Schools are not facing a cut in funding. Every single school across this country will get an increase in funding.
Nick Gibb
The hon. Gentleman cannot cite a website that claims there are cuts in funding when every school in this country will receive an increase in funding. There are costs that schools face, whether those be national insurance in 2015-16 or pension contributions, and there will be salary increases to pay in the future, but those are cost pressures that are being incurred right across the system.
I have put the record straight on these matters so that we can have an honest debate about the issues. Opposition Members would acknowledge that every school, including those in the constituencies of the hon. Member for Wallasey and the hon. Member for Wirral West (Margaret Greenwood), who cited Fender Primary School, will, like that school, see its funding increase. There is no cut in funding to Fender Primary School. The funding will rise from £4,649 per pupil to £4,690 per pupil.
Mr Nigel Evans (in the Chair)
Order. I remind Angela Eagle that she does have a minute or so at the end to wind up, so she has an opportunity
Nick Gibb
There is no cut in funding at Fender Primary School. The funding will increase, on top of which it will receive £1,320 per pupil in pupil premium.
We will also be able to go further than our manifesto commitment that no school would lose funding as a result of the national funding formula. Now, every school in the country will attract at least 0.5% more per pupil in 2018-19 and 1% more per pupil in 2019-20. Thirty five of the 111 schools in the Wirral will attract funding increases as a result of this decision to raise the funding floor, but all schools in Wirral will see an increase in their funding over the next two years.
Our formula will also rightly result in a significant boost directed towards the schools that are currently the least well-funded. I have said that the formula will provide for all secondary schools to have a de minimis per pupil funding of £4,820 in 2019-20 and for primary schools to have £3,500. My consultation confirmed the importance of funding for additional needs such as deprivation and low prior attainment. The consultation found that those factors were the best way to identify the children most likely to fall behind and to remain behind their peers. It is only right that we provide the greatest resources to the schools that are educating the greatest numbers of those children. In the Wirral, more students on average face these additional barriers, with greater than average percentages of children eligible for free school meals and living in the most deprived areas. Nationally, the formula will allocate £5.9 billion to additional needs funding and will distribute that funding more fairly. We have also protected the high needs budget, and there will be an increase in high needs spending in the Wirral.
In view of time, I will just say that for this Government, social mobility and education are a priority. The additional funding that we have announced, together with the introduction of a national funding formula, will provide schools with the investment that they need to offer a world-class education to every child in the country.