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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 Davies; I look forward to the 10 or 15 minutes ahead of us. I congratulate the hon. Member for Stroud (Dr Drew) on securing this important debate and on his introduction of it. I also thank my hon. Friends the Members for The Cotswolds (Sir Geoffrey Clifton-Brown), for Tewkesbury (Mr Robertson), for Gloucester (Richard Graham) and for Cheltenham (Alex Chalk) for their important contributions. All of them continue to make strong representations to the Government about school funding in their area.
The Government are determined to create an education system that offers opportunity to everyone, no matter their circumstances or where they live. Schools must have the resources they need to make that happen. That is why we are investing more money in our schools, helping them to make the most out of every pound they receive, and delivering on our promise to make funding fairer through the introduction of the national funding formula. In 2017-18, funding was for the first time distributed to local areas based on the individual needs and characteristics of every school in the country. That will also happen in 2018-19, for the second year running. This historic reform is the biggest improvement to how we allocate school funding for a decade and directs resources where they are needed most.
We all want to ensure that all children, regardless of where they live, receive a world-class education. We have made significant progress on that, thanks in part to our reforms. The attainment gap between rich and poor children is shrinking, the proportion of pupils in good or outstanding schools has increased from 66% in 2010 to 84%, and primary school children have achieved their highest ever score on international reading tests.
While more money is going into schools than ever before, we recognise the budgeting challenges that schools face and that we are asking them to do more. Because of that, and because children only get one chance to have a great education, the Government have prioritised school spending, even while having to take difficult public spending decisions in other areas.
In total, across the country, core funding for schools and high needs will rise from almost £41 billion in 2017-18 to £43.5 billion in 2019-20. Figures from the Institute for Fiscal Studies show that real-terms per-pupil funding for five to 16-year-olds in 2020 will be more than 50% higher than it was in 2000. We can compare ourselves favourably to other countries. The UK spends as much per pupil on primary and secondary state education as any major G7 economy in the world, apart from the United States of America.
As well as providing additional funding for schools, we have made funding fairer by introducing the national funding formula. Under the previous system, schools with similar pupil characteristics received significantly different levels of funding for no good reason, meaning that some schools were not getting the resources that they needed. That is why it is so important that we have delivered on our promise to reform the unfair school and high-needs funding systems and introduce a national funding formula. Government Members have been particularly active over the years, through the f40 group, in ensuring that we have a fairer funding system.
Schools are already benefiting from the gains delivered by the national funding formula. Since 2017, we have given every local authority more money for every pupil in every school, while allocating the biggest increases to the schools that have been most underfunded. The underfunded schools will attract up to 6% more per pupil by 2019-20, compared with 2017-18. My hon. Friend the Member for Gloucester is absolutely right to insist on care in how we use language. He will be aware that the School Cuts website has been criticised by the UK Statistics Authority for some of the things stated on that website.
Gloucestershire schools will receive gains of 3.1% per pupil by next year, compared with 2017-18. That will mean an extra £19 million in total when rising pupil numbers are also factored in. On high needs, we have recently announced that we will provide £250 million of extra funding across England over this financial year and the next. In Gloucestershire, that means that the local authority will receive an additional £2.7 million across this year and the next, on top of the increases that were already promised.
It is important to keep it in mind that the purpose of the national funding formula is not to give every school the same level of per-pupil funding. Although that would be simple, it would not be fair. It is right that schools that have pupils with additional needs, such as those indicated by measures of deprivation or low prior attainment, should get extra funding to help those pupils. In addition, schools in more expensive areas, such as London, require higher funding per pupil to reflect the higher costs that they face. That extra funding is vital to support children who face greater barriers in education, be that because they come from a disadvantaged background, have low prior attainment or speak English as an additional language. Every child deserves to get the help that they need to reach their full potential, and that is why the national funding formula has protected the £5.9 billion of funding for additional needs across the system.
We do recognise the challenges faced by the lowest funded schools. In the national funding formula, we have included minimum per-pupil funding levels to guarantee that every school will attract a minimum amount of funding for every pupil. In 2019-20, the formula will provide at least £4,800 per pupil for every secondary school and £3,500 for every primary school. In Gloucestershire, secondary schools in particular benefit from that measure, with about half of secondary schools attracting extra funding as a result. We have not limited gains for schools benefiting from the minimum amounts, so the very lowest funded schools will see their funding increase fastest, and some schools will attract gains of 10% or more by 2019-20.
Alex Chalk
Does my right hon. Friend the Minister agree that it is very important that we look into the causes of why high needs provision, in particular, is coming under the pressure that it now is? We have the Milestone School, the Ridge Academy, Belmont School and Bettridge School—so many excellent special schools—but the reality is that they face such huge demands now and we have not really got to the bottom of the reason for that. Is it issues in childbirth? Whatever it is, we need to get to the bottom of it.
Nick Gibb
My hon. Friend raises a very important point. That is something that the Department is looking at very carefully. There are reasons for it, and we know what they are. They are to do with medical advances, the use of private schools—private special schools—and so on. We are providing capital funding to help particular local authorities that have much higher high needs expenditure to address those issues. There is a capital pot and also a development fund, to help them to make those important decisions.
We acknowledge that the national funding formula represents a big change to the funding system. We understand the importance of stability to schools and we want to ensure that there is a smooth transition. We have therefore confirmed that for the next two years, local authorities will continue to be responsible for setting school budgets at local level. I may have got my years wrong at the beginning of this contribution: 2018-19 is of course the first year of the funding formula and 2019-20 is the second year. We have also confirmed that, in 2020-21, we will allow local authorities to use their local funding formula to allocate the funds. But we will allocate the funds to local authorities on the basis of the national funding formula.
We are pleased to see significant progress across the system in moving towards the national funding formula in its first year. Many local authorities have chosen to move towards the national funding formula locally, with 73 local authorities moving all their factor values towards the NFF, and 41 matching the NFF factor values almost exactly. It is the case that 112 authorities, including Gloucestershire, have introduced a minimum per-pupil funding level factor in their local formula. I am very pleased that so many authorities across the country are showing such strong support for our national formula.
Alongside the local flexibility, we recognise that there needs to be a degree of discretion locally to change the balance between schools and high needs funding. Although we want schools to benefit from all the gains and protections afforded by the national funding formula, it will take time for spending to be aligned to the allocations calculated at national level. The ongoing flexibility will help to ensure that the transition to the formula takes place in a way that best meets the needs of local schools and pupils.
We are committed to supporting children with special educational needs and disabilities to reach their full potential, and we expect all schools to play their part. That is why we have reformed the funding system to take particular account of children and young people with additional needs, and introduced a new formula allocation to make the funding for those with high needs fairer. As mentioned previously, we have recently announced that we will provide £250 million of additional funding for high needs throughout England over this financial year and the next. We recognise that, as my hon. Friend the Member for Cheltenham has said, the high needs budget faces significant pressures, and that additional investment will help local authorities to manage them.
Of course, the response to pressures on high needs budgets cannot just be additional funding. That is why we have also set out plans to support local authorities in their role of providing strategic leadership and oversight of the provision for children and young people with SEND. We have announced other measures to support local authorities: a £100 million top-up to the special provision capital fund for local authorities in 2019-20 for new places and improved facilities; the removal of the cap on the number of special and alternative provision free school bids that we approve in the current wave; reviewing current SEND content in initial teacher training provision; and ensuring a sufficient supply of educational psychologists to carry out the statutory functions in relation to the EHCP process, and to support teachers and families. We will continue to engage with local authorities, health providers, families, schools and colleges to work together to manage the cost pressures on high needs budgets and ensure that children with special educational needs and disabilities get the support that they need and deserve.
We recognise that schools have faced cost pressures in recent years. That is why we have announced a strategy setting out the support that we will provide—current and planned—to help schools to make savings on the more than £10 billion of non-staff expenditure across England.
Richard Graham
Does the Minister agree that the key thing is not that funding has been cut but that costs have increased and therefore the issue is how we can share best practice among schools in order to make savings that will help to reduce any deficit that they might have?
Nick Gibb
My hon. Friend is right. We do want to spread best practice. We have a cadre of school resource managers to help schools that are particularly struggling with their budgets to find savings. Other measures are national buying schemes for things such as printers and photocopiers and the roll-out of a free teacher vacancy listing website to help schools to find teachers and drive down recruitment costs, which are a big burden on schools at the moment. We have created a benchmarking website for schools that allows them to compare their costs with those of other schools.
I again thank hon. Members for their contributions to the debate. I reiterate our commitment to providing every child with the opportunity to reach their potential. The extra investment that we are making in our schools, the fairer distribution of school funding, and support to use those resources to best effect, will help us to make that a reality.
Question put and agreed to.