Education Funding

(Limited Text - Ministerial Extracts only)

Tuesday 4th June 2019 Westminster Hall

[The Minister for School Standards (Nick Gibb)]

It is a real pleasure to serve under your chairmanship, Mr Hollobone. I congratulate my hon. Friend the Member for Sittingbourne and Sheppey (Gordon Henderson) on securing this debate and on his excellent opening speech.

The Government are determined to create a world-class education system that offers opportunities to everyone, no matter their circumstances or where they live. That is why we are investing in our education system, to ensure that schools have the resources that they need to make that happen. The point of our investment is to help children to achieve, and I will first emphasise the significant progress we are already making towards creating a world-class education system.

Thanks in part to our reforms, the proportion of pupils in good or outstanding schools has increased from 66% in 2010 to 85% in 2018. My hon. Friend cited the figures in his local area as well. In primary schools, our more rigorous curriculum—now on a par with the highest-performing ones in the world—has been taught since September 2014. Since it was first tested in 2016, the proportion of primary school pupils reaching the expected standard in the maths test has risen from 70% to 76% in 2018; and in reading, which is dear to my hon. Friend’s heart, from 66% to 75% in 2018.

In secondary schools, the more rigorous academic curriculum and qualifications support social mobility by ensuring that disadvantaged children have the same opportunities for a knowledge-rich curriculum, and the same career and life opportunities as their peers. In primary schools, the attainment gap between the most disadvantaged pupils and their peers, measured by the disadvantage gap index, has narrowed by 13.2% since 2011.

To support such improvements, the Government prioritised education funding while having to take some difficult decisions in other areas of public spending. We have been able to do that because of our balanced approach to the public finances and our stewardship of the economy, which has reduced the annual deficit from an unsustainable 10% of GDP, or some £150 billion a year, to 2% by 2018. The economic stability that that has provided has resulted in employment rising to record levels and unemployment being at its lowest level since the 1970s, halving youth unemployment and giving young people leaving school more opportunities to have jobs and start their careers.

It is that balanced approach that allows us to invest in public services and education. Core funding for schools and high needs has risen from almost £41 billion in 2017-18 to £43.5 billion this year. That includes the extra £1.3 billion for schools and high needs announced in 2017, which we invested across 2018-19 and 2019-20, over and above plans set out in 2015. That means that, while we do recognise the budgeting challenges that schools have faced, funding remains high by historical standards. 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. However, that does not mean that we do not understand the pressures that schools face.

We are committed to direct school funding where it is needed most. This is why, since April last year, we have started to distribute funding to schools through the national funding formula. The formula is a fairer way to distribute school funding because each area’s allocation takes into account the individual needs and characteristics of its schools and pupils. That means that, as indicated by my hon. Friend, Kent’s allocation will not be the same as that of an area where pupils have a greater amount of additional needs. It is right that schools with a higher proportion of pupils with additional needs, such as those indicated by deprivation or low prior attainment, should get extra funding.

My hon. Friend cited the overall average funding per pupil in Kent compared with Greenwich. Those figures are averages and reflect overall numbers of children with additional needs in those two local authority areas. In each authority, Greenwich and Kent, a child with particular additional needs will be funded on the same basis. The only difference between the funding that the pupils will attract will be the area cost adjustment, reflecting salary costs in the two areas. That represents about £831 million in overall funding out of the £34 billion school funding total. Areas will not receive the same amount, but they receive per pupil on the same basis.

I refer my hon. Friend and other hon. Members to the schedules that show how the national funding formula is made up. Local authorities will attract the same figure for every primary school pupil in 2019-20, regardless of where they are in the country, and the same figure for secondary and key stage 4. That represents about 73% of the total funding per pupil. The remaining 27% is made up of additional needs. For example, a pupil who has qualified for free school meals in the last six years will attract £540 in primary and £785 in secondary. If that secondary school pupil is in band D of the income deprivation affecting children index, they will attract another £515. If that secondary school pupil has low prior attainment based on primary school results, they will attract an additional £1,550. If that secondary school child has English as an additional language, they will attract an additional £1,385. That applies whether that pupil lives in Sheppey, Greenwich or York. The only difference will be that those figures are multiplied by the percentage area cost adjustment.[Official Report, 15 July 2019, Vol. 663, c. 6MC.]

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 the previous system left most underfunded. This year, all schools have attracted an increase of at least 1% per pupil compared with their 2017-18 baselines and the most underfunded schools have attracted up to 6% more per pupil compared with 2017-18. A caveat to that is the point raised by my hon. Friend the Member for Henley (John Howell): the local authorities will receive that on the basis of the national funding formula, but we are still using the local formula to allocate that funding to schools. That is why there is a discrepancy between the national funding formula allocations and the actual amounts allocated to the schools. At the moment, we are allowing some discretion and flexibility in the system, so that local authorities can decide how that money is allocated to local authority areas.

Under the national formula, schools in the constituency of my hon. Friend the Member for Sittingbourne and Sheppey will attract an extra 4.8% per pupil in 2019-20 compared with 2017-18. That is what Kent will receive for schools in his constituency. In the constituency of the hon. Member for Stretford and Urmston (Kate Green), schools will attract 2.6% more per pupil in 2019-20 compared with 2017-18. In York Central, schools will attract 5.4% more per pupil in 2019-20 compared with the baseline of 2017-18. The hon. Member for York Central (Rachael Maskell) mentioned Tang Hall Primary School. I add my congratulations to that school, where last year 77% of pupils achieved the expected standard in reading, writing and maths, compared with 64% nationally. They are above average in reading and well above average in writing.

[Rachael Maskell]

I appreciate that the Minister praises the hard work of the teachers in supporting children’s learning in that school; however, it is the 23% that I am most concerned about. That we have the largest attainment gap in the country while our funding is the lowest is of great concern.

[Nick Gibb]

I am concerned about that too. I want that 64% nationally to be significantly higher. That is the drive of this Government. Since 2010, standards have been rising. I am particularly proud of what we have achieved in reading in primary schools. Our nine-year-olds have achieved their highest ever score in the progress in international reading literacy study test—we rose from joint 10th to joint eighth between 2011 and 2016. I hope that, in the long term, that will address the real concerns expressed by my hon. Friend the Member for Sittingbourne and Sheppey.

My hon. Friend raised the issue of capital funding. Government funding for school places is based on local authorities’ own data; we fund the places that they report are needed. Local authorities can use that grant funding to provide places in new schools or through expansions of existing schools, and can work with any school in their local area in doing so. Kent has been allocated £328 million to provide new school places between 2011 and 2021. It is for Kent County Council to decide how to allocate that capital. Nationally, the Government have already committed £7 billion to create new school places between 2015 and 2021, which is on top of investment in the free schools programme. We are on track to create 1 million more school places this decade—the largest increase in school capacity in at least two generations.

As important as the funding that schools receive is how they spend those resources. It is essential that we do all that we can to help schools to make the most of every pound. That is why we have set out a strategy to support schools to make savings on the more than £10 billion they spend each year on non-staffing costs. That strategy provides schools with practical advice on how to identify potential savings, including deals to buy energy, computers and so on.

[Mr Philip Hollobone (in the Chair)]

Order. I am afraid we have run out of time; this is the equivalent of the school bell having rung. The Minister may want to send his remarks to the Members present. I call Gordon Henderson to give his closing remarks.

[Gordon Henderson]

Thank you, Mr Hollobone. I intend to be brief, so the Minister could probably have finished his speech. I would like to thank all the Members who have taken the trouble to come along to the debate. Westminster Hall debates are often difficult if only the Minister is present. I am delighted that more people have shown an interest.

I thank the Minister for his response. He gave us a lot of statistics—I refer to my opening speech, in which I talked about lies, damned lies and statistics—and I will read Hansard with great interest to take them in more fully. I do not think there is anything he could have said or did say that will convince me that it is right that a secondary school in Greenwich should get so much more—£1,700 more—on average than secondary schools in my constituency.

[Nick Gibb]

I failed to mention that, in addition to the funding formula, there is a transition—a minimum floor standard whereby we protect schools that would have received less under the formula. That will be another reason for the discrepancy between Greenwich and my hon. Friend’s constituency.

[Gordon Henderson]

I appreciate that, and I hope that my schools will feel the benefit. I would be very surprised if they are as grateful as some might expect them to be. I reiterate that education is the most important gift that we can give people. Sadly, historically, too many people living in my constituency—I am talking about people in their 40s, 50s and 60s—are still unable to read the language of their nation. I think it is shameful that we are not able to find a way through our education system to enable those people to write and read the English language.